A credit rating is actually an assessment of the overall financial condition of a country.
Standard & Poor’s, one of the three largest credit rating agencies, recently improved Serbia’s prospects for further credit rating increases, bringing our country one step closer to obtaining the so-called investment rating, Finance Minister Sinisa Mali told Tanjug and expressed confidence that we will be able to get it by the end of this year or in the middle of 2023 at the latest.
He points out that this would be the first time in the history of our country if we had an investment rating, and that he is sure that it would have already happened if there had not been a Covid 19 pandemic.
Explaining why it is important to have this rating, he points out that the credit rating is actually an assessment of the overall financial condition of a country, its prospects, economic policy.
“It’s like when a person goes to the scanner and the doctor checks the condition of all organs, to see how healthy he is. On the other hand, when it comes to ratings, the goal is to be part of a smaller group of countries in the world that have reached investment rating,” says Mali.
According to him, having this rating means that the country is stable and its economy healthy, that it has a good perspective of development, which entails a positive attitude of investors towards that country, because they want to invest in such stable countries.
What is especially important for our economy and citizens is that any improvement in the investment rating automatically leads to a reduction in interest rates for citizens,” emphasizes Siniša Mali.
He adds that this gives additional benefits to businessmen when they purchase equipment, decide to invest in new plants, and when it comes to citizens, interest rates are lower when they borrow through borrowing or leasing, Tanjug reports.
