Revision of Malta's sovereign rating

The Minister of Finance and Commerce has taken note that Moody's Investors Service has to-day announced that it has shifted Malta's sovereign rating from its current rating of A2 to A3. Whilst this move was to be expected given the prevalent structural Budgetary deficit, the Minister of Finance notes that Malta's sovereign rating has retained its investment grade status and as such this move will only have a marginal effect on the pricing of borrowings by or guaranteed by the Republic of Malta. This is mainly attributable to the positive measures taken by Government in the recently presented Budget.

The move in the rating assigned by Moody's Investors Services was announced following extensive meetings by the Agency in Malta last month and in effect it reflects the imbalances in the economy that have emerged in recent years. In retaining the rating in the investment grade of A3 Moody's is recognising the determination of the Authorities to implement concrete measures to effectively address the situation, particularly the fiscal deficit.

The Minister emphasised that in the light of this revision of Malta's sovereign rating, the Government was more determined than ever to adopt the necessary macroeconomic policies that would contribute to stability in the economy and a level of sustainable growth. In this regard, he said that the Government would continue to introduce the necessary reforms and restructuring policies that would strengthen the economic base and make it more productive and efficient. The Government would also continue to pursue fiscal policies that would be aimed at achieving a reduction in the budget deficit to the set target of 5% (deficit /GDP) ratio over the next two years. He felt sure that such policies would contribute to long term sustainability in the economy and eventually to an upward revision of the country's sovereign rating, so long as the country continued on the path of pursuing fiscal prudence.

Moody tirrevedi r-"rating" ta' Malta

Il-Ministru tal-Finanzi u l-Kummerð óa nota tal-fatt li l-Moody's Investors Service illum óabbar li biddel r-rating ta' Malta minn A2 æal A3. Filwaqt li kien qed jistenna dan it-tibdil minóabba fid-Defiðit strutturali tal-Budget, il-Ministru tal-Finanzi jinnota li r-rating úamm l-istatus tal-grad ta' l-investiment u minóabba f'hekk din il-mossa se jkollha effett maríinali fuq il-prezz tas-self maæmul jew iggarantit mir-Repubblika ta' Malta. Dan íej l-aktar mill-miúuri poúittivi li l-Gvern óa fil-Budget imressaq m'ilux.

Il-mossa fir-rating moæti mill-Moody's Investors Service tóabbret wara laqæat twal li din l-Aíenzja kellha x-xahar l-ieóor f'Malta u fil-fatt tirrifletti l-iúbilanð fl-ekonomija li feíí fis-snin li æaddew. Billi úammet ir-rating fil-grad ta' A3, Moody's qeædin jaærfu d-determinazzjoni ta' l-Awtoritajiet Maltin li jwettqu miúuri konkreti biex jieódu ósieb is-sitwazzjoni l-aktar id-defiðit fiskali.

Il-Ministru tal-Finanzi saóaq li fid-dawl ta' din ir-revizjoni tar-rating ta' Malta, il-Gvern kien aktar determinat minn qabel li jadotta l-politika makroekonomika meótieía biex jæin lill-istabbilta` ta' l-ekonomija u livell ta' tkabbir sostenibbli. F'dan ir-rigward il-Ministru qal li l-Gvern se jkompli jdaóóal ir-riformi meótieía u politika ta' Ristrutturar li jsaóóu l-baúi ekonomika u jaæmel l-ekonomija aktar produttiva u effiðjenti. Il-Gvern se jkompli jfassal politika fiskali mmirata lejn il-kisba ta' tnaqqis fid-defiðit tal-budget æat-target proporzjonali ta' 5% (defiðit/PGD) tul is-sentejn li íejjin. Il-Ministru tal-Finanzi u Kummerð qal li jinsab ðert li din il-politika taæti kontribut æas-sostenibbilta` fl-ekonomija fuq medda twila ta' úmien u eventwalment lejn reviújoni æat-tluæ tar-rating tal-pajjiú, sakemm il-pajjiú jibqa' miexi tul it-triq tal-prudenza fiskali.