MF: BB+ credit rating maintained with a stable outlook
In the latest report on the country, the credit agency "Fitch" confirmed the credit rating "BB+" with a stable outlook. According to Fitch, this is due to the credible and consistent macroeconomic policies supported by the long-term fixed exchange rate policy, better management indicators than countries with similar economic performance, as well as the medium-term reforms related to European integration.
- The agency expects an average growth of the economy in the coming years of 3,5%, and the implementation of a credible medium-term fiscal strategy with a gradual reduction of the budget deficit will be a key factor for stabilizing the debt. It expects a moderate reduction of the budget deficit to a level of up to 3,5% in 2026. The reduction is based on the expectation that the arrears will be normalized, due to which the deficit was revised with the rebalance - say the Ministry of Finance.
"Fitch" cites the fight against the gray economy through digitization of processes as an important link of the fiscal policy, while the Government's intention to introduce electronic invoices is noted.
- According to "Fitch", the debt will move above the prescribed limit according to the Budget Law. The report notes that a loan of 500 million euros will be realized from Hungary with lower interest rates than those on international markets, in order to cover budget needs. In the period 2025-2026, they expect a larger volume of domestic borrowing on the domestic market, accompanied by favorable loans, including from the World Bank and the EBRD. They believe that the funds from the Precautionary and Liquidity Line from the IMF, which were approved and represented reserves, will not be used - say Finance.
According to Fitch, the growth will be stimulated by the realization of the investments, especially the infrastructural ones on Corridors 8 and 10e. The support that RS Macedonia receives from the EU, as part of the European integration process, will also have a positive impact.
- The retained credit rating is a confirmation of the policies of the new Government in the direction of active fiscal consolidation and stabilization of public finances, which will be continued in the coming period with the adopted Fiscal Strategy, the Strategy for the Management of the Public Debt and the Budget for 2025, which is in preparation phase - say the Ministry of Finance.
Credit agency "Fitch" publishes reports on the country's credit rating twice a year. In April, the country's credit rating "BB+" was also confirmed with a stable outlook. The credit rating "BB+" with a stable outlook has been maintained since 2019.
The credit rating of the country, as well as the policies it implements, is evaluated by the credit agency "Standard and Purse" twice a year.
The credit rating prepared by the credit rating agencies shows the degree of investment risk and is one of the key indicators that potential investors take into account when making their decisions.