Note the sovereign Gabon: No danger in delay for Regis … – gabonreview.com (Press Release)

If the rating easily understand the country by Moody’s, the Minister of Economy said that this situation is not likely to worry about.

© Gabonreview

The situation Gabon’s economy is not as alarming as willing to believe Moody’s . This, at least, what suggested the Minister of Economy, following the downgrade of the sovereign rating of the country by the US rating agency. “This alarmist Moody’s decision, if it can be understood, is not likely to worry” , assured Regis Immongault, stating: “Moody’s has, indeed, made a systematic review of the ratings of all oil-exporting countries based on their estimate of the price of Brent crude for the year 2016, namely $ 33. In this context, revenues of all oil-producing countries fall significantly “.

He said the international situation on the oil markets is the basis of the rating of many countries including Gabon. “The neighboring Congo saw, at the same time reduced its rating to B, one less step that Gabon” , said the Minister of Economy, which held to qualify: “It is, first, to note that the forecast oil prices made by Moody’s is very conservative in terms of prices currently observed on forward contracts ($ 44 at the end of 2016 ) and the current crude prices of $ 43 about “.

Régis Immongault has also dwelt on the liquidity risks and degradation of Gabon’s debt ratios, mentioned by Moody’s . “At present, the initial finance law is built on an assumption of Brent oil price at $ 45, and $ 42 per barrel and Gabon of risk identified by the agency are to be expected “, he argued. For him, there is no doubt that “The previously conducted exercises confirm that Gabon is in fact perfectly able to better endure an additional shock on oil prices.” “Gabon will continue, as it has done in recent years, a tight fiscal policy that takes full account of the reality of low oil prices and helps maintain financial equilibrium” -t he stressed.

Since 2014, in fact, the government’s strategy is a conservative approach, both on oil prices than on the production or the terms of trade. An amended finance bill, based on an assumption of $ 30 a barrel, is preparing to protect itself from degradation even more pronounced international prices. Better, measures to increase the state revenues and streamline expenses will be implemented to ensure the sustainability of public finances in such a scenario.