2019-02-25
"Let me greet and congratulate you all!
International credit rating agency Fitch has upgraded credit ranking of Georgia. It is a tremendous success and moreover - according to the current data - we are the only country in a greater region to advance in Fitch rating.
What does it mean to be upgraded in the international credit rating?! It is a sign of economy being more competitive, enabling for the attraction of more investments and job creation. It also means that less risks are associated with the economy, leading to decreased interest rates on loans. It is the most significant support towards appropriate economic policy pursued by Georgia.
Advancement in the rating further increases the trust of international institutions and investors at large towards Georgia. It is positively reflected in the business environment of the country and what is most important, it will have a direct correlation with our main challenge - elimination of poverty.
Which arguments led to Fitch making this very important decision?! We managed to reduce the current account deficit. Historic problem of our economy is that Georgia used to be heavily dependent on imports. We managed to alter this pressing issue, which means that we are solidly and rightly pursuing the road leading to a further reduction of this deficit. This very fact has been one of the most significant sources of poverty in Georgia.
Most significant argument taken into account by Fitch while making this decision is that a very hard economic turbulence has been overcome by the region in the second half of the last year, but we managed to make the economy more sustainable and resistant to external shocks.
This has been conditioned by the proper policies implemented by us in the country, one of such to be mentioned is the Larisation Strategy. One of the most significant factors for the advancement in the rating is the attractive business environment and right attitude of the authorities. It was also conditioned by our 6th position in the Ease of Doing Business Rating in the World Bank Index and our championship as a reformer country.
Strength of our economy is conditioned by its diversification, prudent fiscal and monetary policies, supplemented by the most accurate adherence to the program supported by the International Monetary Fund (IMF) in Georgia.
Fitch has also positively assessed our current position of the financial sector, which stimulates bank liquidity, increased quality of assets and other indicators. Prudent policy of the National Bank of Georgia (NBG) needs to be mentioned towards this end, as it became one of the pre-requisites for our advanced position in the rating. According to the sensitivity analysis, all those reforms and initiatives that we are implementing in our economy and which are aimed at the fiscal and macroeconomic stability, will have a positive impact on the further advancement of our position.
According to the Fitch rating, Pension System Reform has also been positively viewed, as we have established a Pension Fund to facilitate a further reduction of deficit and make the process healthier in future.
Fitch rating and upgrade of our credit rating is the most vivid response to the criticism stemming from ignorance tilted towards politicized pluralism in frequent cases. Government of Georgia carries out fundamental reforms, which make our economy more competitive and this is an explicit fact.
At the same time, personally for me it is yet another clear example of us succeeding in our main strategy in future by transforming Georgia into a regional economic hub. As of today, Georgia is the only country that has been upgraded in the credit rating. It happened on the background of the most sustainable attitude towards foreign problems and shocks last year.
Advancement of Georgia in reputable international ratings has turned into a trend. Nevertheless, I am confident that it is not our maximum. We are two steps away from getting an investment rating that will help us in solving the routine problems once and for all. However, what is most important, it should affect the living conditions of our citizens and as soon as possible. Unfortunately, poverty remains to be the most pressing challenge for us and none of the ratings mean anything if the economic progress is not felt by all and unless it is oriented towards our citizens. That is why, special attention is paid to the inclusive growth and we will rest satisfied only when this gets reflected in the improved living standards of our citizens and progress gets felt by all.
I wish to use this opportunity and thank every member of our team as they all invested a titanic effort in making Georgia succeed! Once again, congratulations to all!"