PM says raised ratings good news, government to continue with reform implementation

Prime Minister Andrej Plenkovic told Hina that Standard & Poor's decision to raise Croatia's credit rating was very good news, particularly the agency's very positive assessment of tax reforms and announced further implementation of structural reforms.

The Standard & Poor's (S&P) agency reported on Friday that it had raised its long-term foreign and local currency sovereign credit ratings on Croatia to 'BB+' from 'BB'.

The outlook is stable. The agency affirmed the short-term foreign and local currency sovereign credit ratings at 'B'.

”This is very good news, after Fitch, S&P has recognised our efforts, primarily through our fiscal policy which led to a general government surplus and a further reduction of the public debt,” Plenkovic said.

The prime minister stressed that S&P had exceptionally positively assessed tax reform effects and the government's response to the situation in Agrokor.

"The government's debt ratio has fallen below a still high 80% of GDP. In line with our fiscal and growth forecasts, the ratio could drop another 10 percentage points by 2021 to just below 70% of GDP," S&P said.

"Of course, we are one step below the investment rating and we are aware of what needs to be done to get the investment rating back and that is the implementation of structural reforms which will contribute to a long term sustainability of public finances and raising potential economic growth," the prime minister said.

These are the government's objectives on the economic front and detailed measures with implementation deadlines will be presented in this year's National Reform Programme, Plenkovic said.

Text: Hina

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