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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 00:30

Moody’s upgraded Lithuania's credit rating to positive

BC, Vilnius, 08.09.2014.Print version
International credit rating agency Moody’s has upgraded Lithuania's long-term credit rating outlook from stable to positive, informs LETA/ELTA.

The rating Baa1, however, remains unchanged.

 

Moody’s has based its decision on the fact that Lithuania is going to adopt the euro next year. This will eliminate exchange-rate risks and reduce operational expenses. The adoption will also improve Lithuania's trading competitiveness and speed up its integration into the euro area. It has been noted that once the euro is introduced, government's debt ratio in foreign currency will decrease, compared with the overall government's debt.

 

The rating agency hopes that Lithuania's budget revenue growth in 2014-2015 will be stimulated by healthy economic growth and the increase of excise on cigarettes and alcohol to minimal levels required by the EU.

 

Moody’s says that stable economic growth and further improvement of the Government's fiscal policy could have an effect on rating's upgrade in the future.






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