The international agency Standard and Poor’s confirmed the credit rating of Bosnia and Herzegovina, a B with a stable outlook.
The rating is based on the fact that the fiscal deficit is sustainable, despite the delay in the continuation of the Extended Fund Facility program, which was approved last year by the International Monetary Fund and that the country’s economy has medium growth, which positively impacts fiscal revenue, according to the analysists from Standard and Poor’s.
The stable outlook indicates that this agency’s analysists believe that the government will be able to finance budgetary needs on the domestic capital market and that in the next 12 months, it will be directed towards meeting the demands of the EFF. The foreign debt is relatively low and is under good credit conditions.
The credit rating of BiH could be decreased if the IMF loan isn’t paid in the near future, which would cause a need for external financing and lead to pressure of liquidity at the level of both entities in the next 12 months.
They confirmed that BiH is oriented towards guaranteeing the independence of the Central Bank and a stable monetary policy in accordance with the principles of a currency board, which means full coverage of the monetary base with foreign exchanges of the central bank, according to the Public Relations Service of the Central Bank of BiH.
(Source: Biznisinfo.ba)
