Moody’s: tax hikes, budget are credit positive. Normalized budget process may ease access to donor financing

The tax hikes recently approved by Parliament will pave the way for the ratification of the first public budget since 2005. This would be credit positive for the country, according to Moody's. Currently, the rating is 'B2 negative' by the agency.

A normalized budget process would also allow the government to reduce its fiscal deficit. This is expected to drop from 9.5 percent of GDP in 2016 to 8.9 percent in 2017 and 8.7 percent in 2018, the credit rating agency said in a recent research ...

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