The Minister for Finance welcomes another positive credit rating report on Malta published by DBRS Ratings Limited, which confirms the country's stable outlook and its 'A' rating.
Amongst other factors, the 'A' rating reflects Malta's solid external position, the ongoing improvement in the fiscal position and favourable public debt structure, as well as the country's strong economic performance—being among the fastest growing in the Euro area—and the robust financial position of households.
DBRS acknowledges the Government's efforts in reforming public finances and stregthening the fiscal framework, stating that "important improvements in fiscal management have been undertaken, after weak fiscal performances in the past."
DBRS also notes the consistent reductions in both the deficit and debt ratios that have taken place in the last four years, stating that these were supported by solid tax revenues and expenditure consolidation measures. It further remarks that the debt ratio is expected to continue on a downward trend further below the 60 per cent, after peaking in 2011 at 70.4 per cent.
DBRS acknowledges the Government's labour market policies directed towards increasing the labour market participation rate and securing the long-term sustainability of pensions.
DBRS comments favourably on recent reforms implemented by the Government to address structural weaknesses, in particular the reforms in the energy sector. It expects these reforms to continue to support potential output.
Minister for Finance Edward Scicluna comments that: "Once again this report acknowledges the effectiveness of the Government's policies in reforming public finances and increasing the standard of living in recent years, while it expects such policies to continue boosting the country's performance in the coming years."
Source: PRESS RELEASE BY THE MINISTRY FOR FINANCE
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
