International rating agency Standard & Poor's affirmed existing credit rating of Bosnia and Herzegovina, which remains at ‘B’ level, with a stable outlook.
S & P analysts believe that the stand-by arrangement with the IMF in September 2012 ensured the stability of Bosnia and Herzegovina.
According to their expectations, economic growth less than expected, election spending, and excessive spending of lower levels of authorities could pose a risk when it comes to achieving the planned fiscal targets.
Therefore, the conditions of the stand-by arrangement should be incentive ,to continue the consolidation of finance, and to help stabilize the public finances, as well as increasing the capacity to settle its growing obligations for repayment of external debt.
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S & P analysts expect that the amount of the budget deficit will be about one per cent, while the debt of the government sector is expected to reach a maximum of 39 percent of GDP this year,and after that it should reach its reduction to 36 percent of GDP by 2016. year.
Rating, according to analysts and agencies, would be in danger in the event of a significant deterioration of the position of BiH, or because of failure to meet the requirements of the stand-by arrangement, it is said by statement.
