The international rating agency Moody’s affirmed the credit rating of Bosnia and Herzegovina, being “B3” with a stable outlook, the Central Bank of Bosnia and Herzegovina (CBBC) announced.
The Central Bank of BIH is recognized as an institution that effectively implements the Monetary Board Agreement and enjoys a high level of credibility, and is recognized as a positive factor of institutional strength and management.
The country’s fiscal power is better assessed, compared to countries with the same sovereign rating. The soft budget surpluses from previous periods, both the structure and the level of public debt, have created fiscal space to respond to the pandemic, without a significant increase in fiscal weaknesses.
Analysts estimate that sovereign evaluation is largely constrained by a complex political structure that slows down institutional progress and advancement in the area of economic reforms. These negative factors have been partially offset by the moderate level of debt and the international community’s commitment to the country’s economic stabilization.
Also, the international rating agency Standard & Poor’s affirmed the credit rating of Bosnia and Herzegovina, which is “B” with a stable outlook. The outlook is currently stable as the macroeconomic impact of the pandemic and the still stable level of government debt has been assessed to create a significant balance against the aforementioned risk factors.
The rating agency’s assessment says the Currency Board arrangement, implemented by the Central Bank of Bosnia and Herzegovina, is an important anchor of BiH economic policy.