April 11 (SeeNews) - Standard & Poor's (S&P) has affirmed Serbia’s long-term foreign and local currency sovereign credit rating at BB+, with a stable outlook, Serbia's central bank said.
By increasing the key policy rate gradually, Serbia prevented the spread of inflationary pressures, as well as that medium-term inflation expectations remained largely anchored due to a credible monetary policy, tightening of monetary conditions and the maintained relative stability of the exchange rate, the central bank, NBS, said in a statement on Monday.
S&P also noted the proven credibility of Serbia’s overall economic policy, its favorable long-term growth prospects, fiscal discipline, lower financing needs and the downward trajectory of public debt.
"The coordination of monetary and fiscal policy in the previous years, the consistency and continuity of economic reforms, the transformation of the Serbian economy and the trust of domestic and international investors and institutions have provided the preconditions for reaching the investment rating in the coming period and formally entering the group of countries where we already are based on numerous indicators. I am convinced that had it not been for the pandemic and the conflict in Ukraine, Serbia would have already been a country with an investment rating," NBS governor Jorgovanka Tabakovic said.
S&P also noted the high FDI inflows which played an important role in expanding export capacity and increasing their diversification, as well as in boosting the country’s FX reserves, which are projected to remain adequate in the medium-term, the NBS said.