The Ministry for Finance joins other organisations in welcoming the favourable report issued by credit rating agency Moody’s on 4th October 2013.
The report, while confirming Malta’s A3 government bond rating, also changed the outlook of the Maltese economy from negative to stable. From the Ministry’s viewpoint, the significant highlights of the report are the following.
Firstly, Moody’s estimates that the fiscal deficit-to-GDP ratio will go down to 3.1% in 2013. In this, Moody’s are acknowledging that the measures being taken by the new Government to reduce the fiscal deficit – including the Enemalta reform and other fiscal measures to reduce contingent liabilities – will successfully reduce the deficit as from 2013.
As a result of the fiscal consolidation efforts and the current economic recovery, Moody’s also expects the debt-to-GDP ratio to remain stabilised in 2014 to 74.2%. This is also below the EC’s forecast of 74.9% for the same year.
Secondly, Moody’s is forecasting GDP growth to rise to 2% in 2014 on the back of higher domestic demand which goes beyond the Government’s own forecast of 1.6%, as laid out in the Stability and Convergence Programme.
Thirdly, Moody’s states that Maltese financial markets have no funding difficulties, unlike international financial markets during recent years. It further notes that “moreover, the strength of Malta’s banking system is evident in its solid external asset position, which stands in stark contrast to that of Cyprus and other international banking centres that have been hit by volatility.”
In conclusion, the Ministry for Finance notes the encouraging overall statement made by Moody’s wherein it remarks that, “a modest level of progress has been achieved to date, and more substantial results are likely to follow in the coming months.”
Il-Ministeru għall-finanzi jenfasizza l-istqarrijiet sinifikanti maħrug minn Moody’s
Il-Ministeru għall-Finanzi jingħaqad ma’ organizzazzjonijiet oħra biex jilqa’ ir-rapport ta’ klassifikazzjoni tal-kreditu Moody’s maħruġ fl-4 Ottubru tal-2013.
Filwaqt li jikkonferma l-klassifikazzjoni ta’ A3 tal-bonds tal-Gvern Malti, ir-rapport tejjeb il-prospettiva tal-ekonomija Maltija minn klassifika negattiva għal waħda stabbli. Mill-perspettiva tal-Ministeru, l-punti prinċipali l-aktar sinifikanti tar-rapport huma dawn li ġejjin.
L-ewwelnett, il-Moody’s qed tistma li l-proporzjon tad-defiċit fiskali mal-PGD (Prodott Gross Domestiku) se jinżel għal 3.1%. F’dan, Moody’s qed tirrikkonoxxi l-miżuri li qegħdin jittieħdu mill-Gvern biex jitnaqqas id-defiċit fiskali inkluża r-riforma tal-Enemalta u miżuri fiskali oħra biex jitnaqqsu r-responsabbiltajiet kontinġenti.
Bħala riżultat tal-isforzi ta’ konsolidazzjoni fiskali u l-irkupru ekonomiku attwali, Moody’s qed tistenna li l-proporzjon tad-dejn mal-PDG jibqa’ stabbli fl-2014 għall-74.2%. Dan huwa wkoll taħt il-previżjoni tat-tbassir tal-74.9% tal-KE għall-istess sena.
It-tieni nett, Moody’s qed tbassar tkabbir fil-PGD li jitla’ għal 2% fl-2014 abbażi ta’ stima li ser ikun hemm żieda fid-domanda domestika. Dan imur ‘lil hinn mill-istima tal-Gvern innifsu, li fl-Istability and Convergence Programme, bassar tkabbir fil-PGD ta’ 1.6%.
It-tielet nett, Moody’s tiddikjara li s-swieq finanzjarji Maltin m’għandhom l-ebda diffikultà ta’ finanzjament b’differenza mas-swieq finanzjarji internazzjonali li f’dawn l-aħħar snin, “barra minn hekk, il-qawwa tas-sistema bankarja ta’ Malta toħroġ ċara mil-pożizzjoni b’saħħitha fl-assi esterni tagħha, li hija f’kuntrast qawwi ma’ dak ta’ Ċipru u ċentri oħra bankarji internazzjonali li ġew milquta minn volatilità.”
Bħala konklużjoni, il-Ministeru għall-Finanzi jinnota d-dikjarazzjoni ġenerali inkoraġġanti magħmula minn Moody’s li, “s’issa inkiseb livell modest ta’ progress, u r-riżultati aktar sostanzjali x’aktarx se jsegwu fix-xhur li ġejjin.”
– Tuesday, 8th October, 2013