The ratings agency “Fitch” has downgraded Macedonia’s credit rating from BB+ to BB, reported “Reuters”.
The downgrade of the country’s credit rating according to “Reuters” is because of the recent increase in allegations of corruption, this was confirmed by “Fitch” in their words it was due to “shortcomings in the standards of good governance”.
Furthermore, another reason for the downgrade in Macedonia’s credit rating is down to the failure of the Pržino Agreement last year, and the unsuccessful attempts to hold early parliamentary elections in April and June of this year.
After several months of protests, the opposition’s boycott of Parliament and obstructions in investigations into high-level corruption by the Special Prosecutor’s Office have also influenced the country’s credit rating.
As a result of the political crisis, the report noted an increase of withdrawal of deposits from banks made by members of the public in April, as well as the reduction of projections for GDP from 3.6% to 2.5%.
The current outlook of the credit rating assessment are again negative, and should nothing change in the future, the credit rating may fall to the level of BB-.