“I want to congratulate Serbia … This is a big achievement,” von der Leyen said of the rating upgrade at a 25 October press conference with Serbian President Aleksandar Vučić.
The higher credit rating – a signal of confidence in the ability of the government to repay its debts – puts Serbia above others hoping to join the EU, including Turkey, Albania and Montenegro.
Languishing at the bottom of the table is Ukraine, assessed as having a selective default on foreign currency, after the wartorn country restructured billions in sovereign debt.
For Vučić, it’s a testimony to the resilience and hard work of all the citizens of Serbia.
The upgrade is a “significant milestone” that “represents a turning point for the economic trajectory of our country”, Vučić said, according to Euronews Serbia.
S&P, one of the three major credit rating agencies alongside Moody’s and Fitch, cites strong domestic demand, partly linked to investment in the Expo 2027 due to take place in Belgrade – but also points to a number of economic and political challenges.
The EU is its biggest trading partner, but its bid to join the bloc will be “slow and challenging”, S&P said – given a squabble with its neighbour Kosovo, and a failure to align with key EU foreign policy decisions such as sanctions on Russia.
“Another risk stems from Serbia’s high dependence on Russian gas supplied via the Balkan Stream Pipeline,” S&P said – though that’s been mitigated by a new interconnector supplying an alternative, Azeri product
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Publish date : 2024-10-29 02:20:00
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