NBG President on Georgia's Positive Economic Outlook

Standard & Poor’s is one of the biggest international rating agency names. Its rating of Georgia’s sovereign credit appeared just recently for the first time in the last 8 years. Like Fitch Ratings, the Standard & Poor’s has changed Georgia’s rating, upgrading it to “BB” from “BB-“.

Stable outlook urged S&P Global Ratings to upgrade Georgia's sovereign credit rating from "BB-" to "BB". The positive change had Koba Gvenetadze, the President of the National Bank of Georgia commenting and evaluating the meanings and predictions of the updated ratings.

Expectedly enough, Gvenetadze positively evaluated the decision of the influential international rating agency.

“For international investors, the best indicator of improved macroeconomic stability and investment environment is international sovereign credit ratings. Therefore, it is positive news that our investment rating has been improved,“ said Gvenetadze.

The President of National Bank of Georgia connected the update of Georgia’s placement on the S & P Global Ratings sovereign credit ratings to the Bank’s rightful policies.

“Next to the steps taken by the government, the consistent policies of the National Bank have also made a significant contribution to the improvement of Georgia’s place in the ratings. The rating company has reported that the accumulation of international reserves by the National Bank helps to reduce the risks coming from the external sector,“ said the President of NBG.

While touching upon the positive factors that will help Georgia maintain its stable image; Gvenetadze overviewed the challenges of the country’s macroeconomic growth.

 “The floating exchange rate and independence on the National Bank are important positive factors for maintaining macroeconomic stability. The dollarization, its high level remains a challenge, but with the joint efforts of the government and the National Bank, dollarization tends to decline. The latter will inevitably contribute positively to future improvements of ratings,“ announced Gvenetadze on Saturday.

The President of NBG said that he is hopeful Georgia will be able to reach BBB in a few years. He reported that the update would play a big role in increasing investments and the country’s sustainable economic growth.

By Nini Dakhundaridze

Related Story: Georgia’s Sovereign Credit Rating Raised to BB with Stable Outlook by Standard & Poor's