Rating agency looks at post-election SerbiaSource: Tanjug
NEW YORK -- U.S. based rating agency Fitch Ratings issued a release on Monday appraising the situation in Serbia in the wake of presidential elections.
It said that the “presidential and parliamentary elections in Serbia have increased uncertainty about the direction of economic policy and relations with the IMF (International Monetary Fund).”
One day after the election of Tomislav Nikolić as president in the second round, Fitch Ratings said that “these developments are within the tolerance levels of our 'BB-' rating with a Stable Outlook,” considering the rating the agency had affirmed in November.
Fitch said that “Nikolić's occasional anti-IMF rhetoric has also led to a widespread assumption that he will take a tougher stance on negotiations with the fund.”
“While Nikolić's victory does increase uncertainty regarding Serbia's dealings with the IMF, the previous coalition has not automatically followed IMF recommendations in full, for example on pension reform, without fully derailing relations. So the arrival of the new president need not signal a dramatic change in Serbia's relations with the IMF,” said the agency.
The IMF approved a EUR 1 billion Stand-By Arrangement with Serbia last September, but froze the SBA in February 2012 and will unfreeze only after the country has reviewed its budget for the year.