Minister says long-term rating cut is "justified"
U.S. credit rating agency Standard and Poor's has lowered Serbia's long-term credit rating by one degree, from BB to BB-, with a negative outlook.
Tuesday, 07.08.2012.
16:48
NEW YORK, BELGRADE U.S. credit rating agency Standard and Poor's has lowered Serbia's long-term credit rating by one degree, from BB to BB-, with a negative outlook. It came "because of a lack of urgent government steps to improve faith in the monetary system and restore fiscal stability", the Wall Street Journal reported on Tuesday. Minister says long-term rating cut is "justified" The agency says the fiscal and foreign deficit have become worse in the first half of the year, adding that introducing a monitoring body within the National bank of Serbia could reduce the central bank's independence, which would lead to politics getting involved in the monetary policy. The agency expects the changes to the law on the central bank to have a negative effect on the value of the dinar and the country's foreign exchange reserve, as well as on the inflation and the ability of the National Bank of Serbia to maintain price stability. Dinkic: Completely justified Serbia has experienced a drop in credit rating completely justifiably, because it has a record budget deficit this year and a large increase in public debt, Minister of Finance and Economy Mladjan Dinkic said on Tuesday and announced fiscal consolidation steps, which will be ready in September. Dinkic accused the previous government of being largely responsible for the record budget deficit and great increase in public debt, but he added he would assume responsibility for all the steps he intended to make to rectify the situation. Dinkic told reporters he would announce the fiscal consolidation plans on Wednesday, adding that a complete plan for improving public finances should be ready in September. Serbia could not avoid the drop in credit rating, he stressed, adding that it was the result of the crisis on the EU market, where much more developed countries also lost some of their rating. Tanjug
Minister says long-term rating cut is "justified"
The agency says the fiscal and foreign deficit have become worse in the first half of the year, adding that introducing a monitoring body within the National bank of Serbia could reduce the central bank's independence, which would lead to politics getting involved in the monetary policy.The agency expects the changes to the law on the central bank to have a negative effect on the value of the dinar and the country's foreign exchange reserve, as well as on the inflation and the ability of the National Bank of Serbia to maintain price stability.
Dinkić: Completely justified
Serbia has experienced a drop in credit rating completely justifiably, because it has a record budget deficit this year and a large increase in public debt, Minister of Finance and Economy Mlađan Dinkić said on Tuesday and announced fiscal consolidation steps, which will be ready in September.Dinkić accused the previous government of being largely responsible for the record budget deficit and great increase in public debt, but he added he would assume responsibility for all the steps he intended to make to rectify the situation.
Dinkić told reporters he would announce the fiscal consolidation plans on Wednesday, adding that a complete plan for improving public finances should be ready in September.
Serbia could not avoid the drop in credit rating, he stressed, adding that it was the result of the crisis on the EU market, where much more developed countries also lost some of their rating.
Komentari 5
Pogledaj komentare