NEW YORK, April 12 (Reuters) - Standard & Poor's on
Monday raised its foreign long-term sovereign credit
rating on the government of Georgia by one notch to B
plus from B, citing its relative economic strength and
growth prospects. The outlook on the new rating is
stable, the firm said in a statement. S&P's move brings
it in line with Fitch Ratings, who has a B-plus rating on
the credit.
"From 2006 until the brief but intense war with Russia
in August 2008 and the onset of the global financial
crisis, Georgia attracted significant foreign direct
investment," S&P said.
"We believe that Georgia's relatively low tax and
business-friendly regime should continue to enable it
to attract investment," the firm said.
Georgia is a key transit route for energy from Central
Asia to Europe, which is an important ingredient in its
growing economy.
"We expect GDP per capita to continue to rise faster
than in most peers over the medium term," S&P said.
There are risks however that constrain the rating
which is still four notches below investment grade.
S&P highlighted geopolitical security risks, a
"contentious domestic political situation", as well as
low social indicators and underdeveloped economic
structure.
“We are delighted that with the affirmed B+ long-term
sovereign rating Standard and Poor's once again
validates government's in-shape policy of maintaining
long-term macroeconomic stability and fiscal
responsibility. We grant high importance to this rating
upgrade also because it provides businessmen and
investors with a higher trust in the future of oureconomy, as it validates our adherence to marketoriented
reforms and our continuous efforts to improve
business climate”, commented Nika Gilauri, Prime
Minister of Georgia (Government of Georgia press
release).
Remark
Itsik Moshe
The first phase of most Israeli investments in Georgia were reflected in buying real estate. According to the specification of this sphere the second stage is to get financing from banks, financial institutes and also the existence of law interest credits. All mentioned in above report will ease the execution of these processes and business will progress. |
