Standard&Poor's Afiirmed Credit Rating of Bosnia and Herzegovina 9/22/2016 Tweet International rating agency Standard and Poor's affirmed credit rating of Bosnia and Herzegovina, B with stable outlook. In the explanation, the analysts of this agency state that the rating is supported by the approval of financial arrangement between Bosnia and Herzegovina and the International Monetary Fund, in the form of Extended Fund Facility, worth EUR 550 million. It is expected that this arrangement will alleviate government financing concerns and provide support for the implementation of reforms that should improve business environment and help to attract foreign direct investment, thereby strengthening the economic growth prospects. The stable outlook is based on the expectations of continuing foreign financing inflows, with ongoing fiscal consolidation. In the absence of the stronger foreign investment inflows, analysts of the agency Standard and Poor's expect growth to be driven by the absorption of foreign funds, with investment mainly financed by multilateral institutions. In the report, it is mentioned that Bosnia and Herzegovina is committed to maintain the independence of the Central Bank of Bosnia and Herzegovina and Currency Board arrangement, which requires adequate coverage of the monetary base by foreign currency reserves.
