Moody’s Investors Service bumped Bosnia and Herzegovina’s foreign currency credit rating up from “B3” to “B2” with a steady outlook.
The upgrade comes as a result of recent policy advancements in Bosnia, including the resolution of the long-standing issue of compensation for war-era foreign currency deposits, the introduction of a value-added tax in January, the country’s move toward balancing state budgets and a decrease of government debt burdens.
In 2005, Bosnia showed signs of continued economic growth as a result of economic reforms, with the real GDP hitting 5.5% and forecasts predicting that it should continue to maintain a level nearing 6%.