The Standard & Poor’s rating agency has decided to keep Serbia’s credit rating at the BB+ level, with stable prospects for its further increase, announced the office of the governor of the National Bank of Serbia (NBS), Jorgovanka Tabaković.
The announcement states that Serbia is still on the verge of receiving an investment rating, despite the unfavorable effects of the conflict in Ukraine, the slowdown in external demand, and the still high, although declining, global inflation.
In its report, the agency Standard & Poor’s particularly points out that Serbia’s rating is supported by “a moderate level of public debt and a credible monetary policy framework”, that “inflation is expected to fall significantly from 2024, thanks to the credibility of the National Bank of Serbia, a firm monetary policy and the stable exchange rate of the dinar against the euro, as well as that “inflation will enter the limits of the target corridor of the National Bank of Serbia of 3.0 (plus – minus) 1.5 percent in the second half of 2024”.
“The banking sector in Serbia is well capitalized, profitable and liquid. In June, the indicator of capital adequacy at the level of the banking system was a strong 22.3 percent, while the share of problem loans reached a historical minimum of 3.0 percent. The share of the deficit of the current account of the balance of payments in the gross domestic product will be more than twice lower than in the previous year, and the net inflows of foreign direct investments will exceed it many times over,” the report of the Standard & Poor’s agency reports.
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