The international agency ‘Standard and Poor’s’ (S&P) confirmed the existing credit rating of B&H, which remains at B level, with a stable outlook, announced RTRS. Analysts think that the stand-by arrangement with the IMF from September 2012 ensured the stability of B&H.
According to their forecasts, economic growth is less than expected, campaign spending and excessive consumption of lower levels of government could pose a risk when it comes to achieving the planned fiscal targets.
Therefore, the conditions of the stand-by arrangement should be an incentive for the continuation for the consolidation of finance and to help stabilize public finance, as well as increase the capacity of the settlement of growing obligations regarding the repayment of high debt.
Analysts expect that the height of the budget deficit would be around one percent, while the government sector debt this year should reach a maximum of 39 percent of GDP, after which it should reduce to 36 percent of GDP by 2016.
According to the opinion of analysts of this agency, the rating would be compromised in the event of a significant deterioration in the position of B&H, or the failure to meet the requirements of the stand-by arrangement, said in a statement.
(Source: ekapija.com)
