According to Finance Minister Sinisa Mali, this is the best award at the end of 2019, because thanks to this and previous estimates, Serbia will be even better positioned in the global financial market, and will reach an investment rating faster.
“One of the world’s largest rating agencies has confirmed our good performance. They praise in particular for lowering our debt levels and reducing our share of dollar debt, thanks to the successful issuance of Eurobonds on the international financial market. In addition, they praise our fiscal results, the surplus in the budget, as well as the level of foreign direct investment, which is of particular importance to us. Thanks to this increase, we are now on the step to an investment rating, and we believe that we will reach it next year”, said Minister Sinisa Mali.
He says he is particularly pleased that the rating agency has recognized Serbia’s potential for further enhancing its credit rating. “They point out that it is possible to increase our country’s rating in the next 12 months, which means for us that we need to work harder and focus more on improving the economic system, which is what we are working on, especially bearing in mind the investment plan, because by building roads, railways and other infrastructure, we will enable faster and easier movement of goods”, explains Mali.
According to him, the agency’s estimates of GDP growth are encouraging.
“Despite persistent weaknesses in the Eurozone, they estimate that Serbia’s GDP will continue to grow, and that at the end of this year it will increase to 3.6 percent and the next to 4 percent. All this says that we have planned the budget for the next year very well, which is predicting 4 percent growth, as well as being planned on a realistic basis”, Mali concluded.
He added that the rating increase is important news for all citizens of Serbia, but also for businesses and the economy in general.
“This means for all citizens lower interest rates and better financing conditions for businesses. This is the best confirmation that the country’s risk is reduced, which is what banks estimate when determining the level of interest rates. In the long run, the benefits that we as a state will recieve are multiple, because all this encourages businesses to invest more, produce, expand capacity, employ people, and all this leads to even more economic growth”, said Mali.
The Minister stated that thanks to these estimates, domestic products will be even more competitive in the foreign market, because modernization of production, thanks to cheaper lending, will result in lower price of the product and its easier sale on the foreign market.
Sinisa Mali states that these are all the benefits that Serbia has recognized, and above all it is an educated workforce, favorable conditions for foreign investment and various tax breaks.
“Serbia is now a stable and predictable market, and by constantly improving services such as constant digitization with the aim of simplifying business registration or issuing building permits, we are speeding up procedures and making both domestic and foreign investors able to operate without tension and unnecessary red tape.” Mali concluded for B92.
