The positive adjustment of the riskiness of these countries for Slovak exporters means that they will be able to take advantage of more favourable conditions for the provision of insurance products in selected cases.
Bratislava, February 28 (TASR) – Montenegro, Georgia, Oman and Qatar have improved by one level in the country risk ranking. This was decided at the February meeting of the member countries of the Organisation for Economic Co-operation and Development (OECD) Consensus. Montenegro and Georgia were helped by their pro-Western orientation, Qatar and Oman by gas and oil production. For export credit agencies, these countries thus represent a lower level of risk as of 9 February this year, Eximbanka SR reported on Wednesday.
“The positive adjustment of the risk rating of these countries for Slovak exporters means that they will be able to take advantage of more favourable conditions for the provision of insurance products in selected cases. In this context, Eximbanka is able to mitigate the commercial, political or combined risks of insolvency on the part of foreign debtors for exporters,” said Eximbanka’s deputy director general Pavol Tavač.
Montenegro is a candidate country of the European Union (EU), aiming to become a member by 2025. The country adopted the euro as its currency in 2002, but is not a member of the eurozone. Despite some instability on the domestic political front, the euro is helping the Montenegrin economy achieve macroeconomic and financial stability and facilitating trade, according to Eximbank. In 2020, Montenegro joined the regional common market of the six Balkan countries, which aims to remove trade barriers and coordinate investment policies. The country is attractive for foreign direct investment and has potential in tourism.
Georgia’s economy is driven by exports and FDI inflows. It is supported by growing revenues from tourism and transport, Eximbank added. Meanwhile, the war in Ukraine has significantly increased Georgia’s role as a key transit country for transport between Europe and Asia. “Despite the ongoing war, a steady trend in improving macroeconomic metrics is expected. The Georgian government continues to budget conservatively, using one-off funds for strategic investments that will strengthen economic assets and the labour force,” the bank reported.
In the case of Oman, the Eximbank said its economic recovery is gaining momentum mainly due to hydrocarbon production. Fiscal and external buffers have increased, supported by higher hydrocarbon revenues and significant adjustments under the medium-term fiscal plan. The government remains committed to fiscal consolidation notwithstanding the oil windfall, as well as reforms to strengthen public financial management and transparency.
Qatar has large net foreign assets and one of the highest gross domestic product (GDP) per capita ratios. It has a flexible public finance structure. On the negative side, it has a high level of public debt compared to similarly ranked countries whose economies are equally dependent on hydrocarbon production. “The country has sustained fiscal surpluses, favourable conditions provide an opportunity to embark on a growth-enhancing medium-term consolidation, which includes in particular revenue diversification and the introduction of a value-added tax,” Eximbank added.
The OECD publishes a ranking of the world’s countries by riskiness on its website www.eximbanka.sk.
Source: TERAZ