Improving the credit rating of Cyprus.
- 26 октября 2017 в 16:05:31
The credit rating of the Republic of Cyprus in foreign and national currency was upgraded to «BB», by the rating agency Fitch. This means that in order to enter the investment category, Cyprus needs only one point.
Representatives of the rating agency say that the rating upgrade shows how serious improvements have been in the sphere of financial management of the state, and also that this area is expected to have good prospects, as the country’s budget is still fairly balanced, and by the end of this year should reach a surplus of 1 percent of GDP. Also before the end of the year, the public debt of the Republic of Cyprus should be reduced by at least 10 percent of GDP (in 2016, this figure was 108 percent). Also, the country’s economy is expected to grow by 3.5 percent in both 2017 and 2018.
It should also be noted that Fitch does not expect serious progress in resolving the Cyprus issue (even though the unification of the island can serve in the long term as a serious economic benefit for both sides). It should be noted that when assessing the economy of Cyprus, the government’s possible steps to reduce the national debt were not taken into account: the privatization of many assets and the development of gas fields in order to obtain commercial benefits.