Thewesternbalkans
Kosovo has received the ‘BB-‘ credit rating from the international credit rating agency Fitch, the Ministry of Finance has announced, emphasizing that it is the first time that the country receives this type of rating.
In the report published on April 19, Fitch emphasizes in particular the credibility of fiscal policies, the stability and low level of public debt, the low budget deficit, and the stable banking sector as the main reasons that have positively supported their credit rating for Kosovo.
“This credit rating will serve as a passport to Kosovo for any foreign investor who is interested in seeing if it is worth investing in our country. It will also affect the reduction of the cost of financing, which will consequently have more opportunities for financing for our businesses”, said the Minister of Finance, Hekuran Murati.
The Credit evaluation process is supported by USAID within the project for “Investment Promotion and Access to Finance”. This support further strengthens the cooperation that Kosovo has with USAID and the USA, it is stated in the press release of the Ministry of Finance.
Comment: The rating underscores Kosovo’s robust financial sector and marks a pivotal moment in its journey towards financial progress with a positive impact for the economic development.
The analysis of the Fitch’s report shows that the rating is supported by Kosovo’s low and stable public debt/GDP, very low interest/revenue, a record of prudent fiscal policy, stable revenue base, its net external creditor position, and sound banking sector. These factors are balanced by its fairly small economy, economic informality, lack of full international recognition, risks from unresolved tensions with Serbia, and reliance on diaspora flows to finance a large structural trade deficit.
This Credit Rating places Kosovo on the world map of countries with stable policies, thus further strengthening the country’s position and recognition in the international arena.
