Persistent fiscal deficits and challenging prospects for fiscal reforms is one of the factors stated by credit rating agency Moody’s Investors Service, that led to this country’s bond rating being downgraded from BAA 1 to BAA2.
The credit rating agency also cited the decline in oil prices, limited economic diversification to weigh negatively on economic growth prospects and weak macroeconomic policy framework given lack of a medium-term fiscal strategy, as other reasons for its decision.
Commenting on the report in the parliament this afternoon, Finance Minister, Larry Howai, assured that the economy remains strong, noting that with oil prices moving upward again, positive results can be expected.
Finance Minister, Larry Howai
Meanwhile , former Energy Minister , Conrad Enill, speaking on Power 102.1fm this afternoon said going forward there must be adjustment in how government conducts its financial affairs.
Former Energy Minister , Conrad Enill