Pristina, April 30, 2024
Today was held the marking ceremony for receiving the first Sovereign Credit Rating from the Fitch Ratings Agency, which has given our state a BB- rating.
The Prime Minister of the Republic of Kosovo was present at the landmark event. Albin Kurti, Minister of Finance, Labor and Transfers, Hekuran Murati, Minister of Industry, Enterprise and Trade, Rozeta Hajdari, Governor of the Central Bank of Kosovo, Ahmet Ismaili, Director of USAID in Kosovo, Eileen Devitt and many representatives from diplomatic missions , financial institutions and economic odes.
In his opening speech of this ceremony, Prime Minister Kurti emphasized that the key factors that have influenced the WB assessment for Kosovo were the reduction of the budget deficit, economic growth, reliable fiscal policies, the continuous increase in tax collection, and the low level of the public debt in relation to the Gross Domestic Product and that this assessment strengthens the position of the Republic of Kosovo even further in the international arena.
“As the Government since the beginning, especially through the Ministry of Finance, Labor and Transfers, we have taken care to undertake sustainable policies that would serve as catalysts for economic growth and favorable macrofiscal positioning of the country”, said the Prime Minister, adding that the factor another positive in Credit Rating has been institutional stability. He added that the Assessment serves as a passport for our country through which foreign investors, organizations and international businesses can be informed about the economic development and financial policies of our country, thus strengthening the position of our state even further in the international arena.
Director Devitt, for her part, emphasized that the credit rating from Fitch Ratings enables access to new financial markets, paves the way for public investments, such as new roads and railways, and eases the way for all those who want to open businesses theirs.
The second part was a panel discussion where the participants were Minister Murati, Governor Ismaili, the Chairman of the Association of Banks of Kosovo, Mr. Suat Bakkal, as well as the Director of the World Bank Office in Kosovo, Mr. Massimiliano Paolucci.
In this discussion, Minister Murati emphasized that the credit assessment by Fitch Ratings puts Kosovo in a favorable position that will affect Kosovo’s access to international financial markets. At the same time, Minister Murati emphasized that the credit rating comes as a result of the Government’s commitment through policies that have influenced the increase in gross domestic product and the reduction of public debt. The panel discussion continued with the four panelists highlighting the advantages of such an assessment.
Prime Minister Kurti’s complete speech:
Dear Minister of Finance, Labor and Transfers, Mr. Hekuran Murati,
Honorable Minister of Industry, Entrepreneurship and Trade, Mrs. Rozeta Hajdari,
Honorable Governor of the Central Bank, Mr. Ahmet Ismaili,
Honorable Director of the USAID Mission in Kosovo, Mrs. Eileen Devitt,
Dear members of diplomatic missions in our Republic, collaborators from international organizations,
Dear guests,
Ladies and gentlemen,
Today we have gathered to present and discuss an issue of special importance for our country. It will have a very positive impact on the country’s economy, but it will also serve as a clear proof of our work as the Government regarding the management of public finances and macrofiscal policies that we have undertaken so far.
For the first time, the Republic of Kosovo has received a Sovereign Credit Rating from the Fitch Ratings Agency, which has given Kosovo a BB- rating. This evaluation means that in the international perspective, our Republic is placed on the map of countries as a destination for foreign investors.
In its assessment, the Fitch Ratings agency has based many economic, financial, institutional and political factors. Specifically, the methodology used by the Agency for sovereign credit assessment is based on the last three (3) years of the country’s financial performance. Therefore, as the Government from the beginning, especially through the Ministry of Finance, Labor and Transfers, we have taken care to undertake sustainable policies that would serve as catalysts for economic growth and favorable macro fiscal positioning of the country. This is clearly seen in the credit rating given by Fitch Ratings for our Republic and in detail in their report which explains the reasons behind this rating.
In the published report, the Agency estimates that the key factors that influenced the WB assessment for Kosovo were the reduction of the budget deficit, economic growth, reliable fiscal policies, the continuous increase in tax collection, and the low level of public debt in relative to the Gross Domestic Product.
“The overall deficit of the Government of Kosovo improved to 0.3% of GDP in 2023, which compares favorably with the median deficit of 3.1% of the ‘BB’ group. The 13% increase in tax revenues, which is explained by the efficiency in tax collection, and the marked increase in grants, has balanced the increase in expenses of 13%, including the marked increase of 33% in capital expenditure. Government debt (including guarantees) fell to 17.5% of GDP at the end of 2023 from 22.4% at the end of 2020, close to its pre-pandemic level and well below the ‘BB’ group median of 53.1%.” – These are the assessments given by Fitch Ratings in their report on the fiscal performance of our Republic.
Likewise, another positive factor in the Credit Rating has been institutional stability, where the Agency has emphasized that our Government is well positioned to serve a full mandate and has pushed forward many important reforms such as the fight against corruption, despite numerous challenges.
This Sovereign Credit Rating that we have received documents the financial strength of our country to pay the debt, and increase credibility with international investors. Thus, this rating facilitates the process of foreign direct investments in the country, reduces lending costs for both businesses and households, as well as opens new opportunities for access to finance in international financial markets.
So, this Assessment serves as a passport for our country through which foreign investors, organizations and international businesses can be informed about the economic development and financial policies of our country, thus strengthening the position of our country even further in the international arena.
Therefore, congratulations for the work and the result to the Ministry of Finance, Labor and Transfers, as well as to all other institutions that have contributed to this success which we share together. Congratulations to everyone on this achievement and thanks to our partners for their continued support.
Last modified: May 2, 2024