In a rapidly evolving environment such as that which we are facing in the global energy markets, the inability to craft and implement appropriate policy measures leaves fiscal and external balances exposed. This could ultimately threaten to undo the macroeconomic stability achieved in recent years.
Sharp declines in the government?s external debt indicators and structural improvements that, over time, should help Pakistan?s export capacity motivated the change in outlook for the foreign currency rating.
The main reason for a slower pace of issuance appears to be a general trend of increased fiscal consolidation by governments in terms of GDP (Gross Domestic Product), especially among some of the largest borrowers.
The main reason for a slower pace of issuance appears to be a general trend of increased fiscal consolidation by governments in terms of gross domestic product, especially among some of the largest borrowers.
Vietnam was able to get a fairly low cost last year because of the scarcity of the paper. On the other hand, a frequent issuer like the Philippines won't be able to enjoy the same borrowing costs even though they have the same ratings.
A resumption of full-scale hostilities could have negative implications for the country's already stressed fiscal and debt position, and likely impair its previously adequate level of external balances.