S&P confirms Serbia’s BB + rating, outlook stable
BELGRADE (Serbia), June 14 (SeeNews) – Standard & Poor’s (S&P) has confirmed Serbia’s long-term sovereign credit rating in foreign and local currency at BB +, with a stable outlook, said Serbia’s central bank , the SNB.
Serbia’s credit rating is supported by the central bank’s credible monetary policy and a moderate level of public debt, important preconditions for the adoption of comprehensive aid programs for businesses and households, whereby the The local economy has been sustained and a major collapse in economic activity prevented, NBS said in a statement Friday.
S&P also noted a significant resilience of the Serbian economy achieved in previous years, as well as the fact that when the global crisis induced by the coronavirus pandemic began, Serbia had a much lower macroeconomic imbalance than there was. is ten years old, the central bank said.
“Serbia was equipped to respond adequately and quickly to the first wave of the crisis. We were among the first central banks in the world to respond by cutting our key rate, which we lowered four times last year – to its current low of 1.0% In addition, when the crisis erupted, we were among the first to introduce a moratorium on loan repayments which, coupled with a timely supply of dinars and foreign currency liquidity under extremely favorable conditions, has had a positive effect on other parts of our economy., as well, ”Governor Jorgovanka Tabakovic said in the statement.
S&P pointed out that Serbia’s current account deficit is now much lower than it was ten years ago and that its funding is less dependent on portfolio inflows compared to the post-financial crisis era, when these flows were the main source of funding for the twin deficits of the time. At the same time, foreign direct investment (FDI), channeled mainly to export-oriented sectors, has fully covered the current account deficit for six years already.