Nezavisne novine: Insufficient discipline or weakening of external liquidity under the current forecasts represent the main risks for credit rating of BiH, has been stated by the international creditworthiness agency "Standard & Poor's" (S&P) in its first annual report on BiH.
From the Central Bank of BiH they say that, even though the establishment of the Fiscal Council of BiH is considered a positive mechanism of fiscal policy, negative ratings of the S&P directly relate to the already weak frame of fiscal management and a low fiscal flexibility with a pressure of huge public spending.
The S&P has in December last year assigned BiH a credit rating B+ with stable predictions, which, according to grade of the Central Bank of BiH, represents encouraging and positive sign in the context of global economic crisis and falling trend of rating of many governments. In its report, the S&P states that the slow, but still middle-term potentially strong economic growth of BiH and a perspective of European integrations with priority servicing of external debt and monetary stability, are the factors of stability of rating, which moderate the risks of effects of global crisis on financial stability and public finances of BiH. Present risk in financial sector of BiH, they remind, is of a smaller intensity than in the region.
By evaluating that the complex political and institutional system brings to the often stoppages and hardens the decision-making process, the S&P as a key points out strengthening institutions and improving the dialog on question of the Constitution.
"Improving the rating of BiH will directly correspond with the dynamics of reforms and progress in strengthening of institutions and the process of associating with the EU, with leading the healthy macro-economic policies", has been concluded in the S&P report.