Ja­panese R&I up­grades Latvia’s credit rating to A-

Baltic News Network - - Front Page -

Ja­panese Rating and In­vest­ment In­for­ma­tion, Inc. (R&I) has an­nounced its de­ci­sion to up­grade Latvia’s rating from BBB+ to Awith a sta­ble out­look, as re­ported by Lat­vian State Trea­sury.

As noted by Lat­vian Fi­nance Min­is­ter Dana Reizniece-Ozola, look­ing back at 2017, Latvia’s eco­nomic growth has be­come faster. Ac­cord­ing to her, the tax re­form as­sisted with strength­en­ing growth of the na­tional econ­omy. She called it a his­toric step to­wards a stronger and more com­pet­i­tive Lat­vian state.

«Three of the world’s largest credit rating agen­cies have put Latvia in the A group so far. With the up­grade by Ja­panese R&I we can be sat­is­fied with Latvia as a mem­ber of the A group,» said Dana Reizniece-Ozola.

R&I em­pha­sizes that up­grade of the credit rating ben­e­fited from the gov­ern­ment’s fis­cal pol­icy, sta­ble state fi­nance and bank­ing sys­tem, as well as eco­nomic devel­op­ment. Latvia main­tains a re­spon­si­ble pol­icy and demon­strates sta­ble eco­nomic growth in spite of geopo­lit­i­cal risks and rel­a­tively slow re­al­iza­tion of EU funds and grow­ing labour costs.

The credit agency wel­comes the much con­tested tax re­form, say­ing that ben­e­fits will be­come clear in time.

Also R&I points to­wards de­mo­graphic changes – Latvia’s pop­u­la­tion keeps re­duc­ing be­cause of neg­a­tive nat­u­ral birthrates and con­tin­ued de­par­ture of labour force to other European Union mem­ber states. The agency notes that con­tin­ued de­cline of the pop­u­la­tion will only make eco­nomic devel­op­ment even more com­pli­cated.


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