Serbia: S&P lowers ong-term credit rating to BB-

07 August, 16:05

(ANSAmed) - BELGRADE, Aug 7 - U.S. credit rating agency Standard and Poor's has lowered Serbia's long-term credit rating by one degree, from BB to BB-, with a negative outlook because of a lack of urgent government steps to improve faith in the monetary system and restore fiscal stability.

The agency says the fiscal and foreign deficit have become worse in the first half of the year, adding that introducing a monitoring body within the National bank of Serbia could reduce the central bank's independence, which would lead to politics getting involved in the monetary policy.

The agency expects the changes to the law on the central bank to have a negative effect on the value of the dinar and the country's foreign exchange reserve, as well as on the inflation and the ability of the National Bank of Serbia to maintain price stability. (ANSAmed)

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