Belgrade is better than Zagreb

Belgrade has better fiscal parameters and prospects than Zagreb, according to the latest comparative analysis of the credit rating of the two cities for 2018 and 2019, published by the agency Moody’s.

Belgrade’s tax revenues are increasing significantly, while they are far more variable for Zagreb, according to a report published on the agency’s official website.

The cities of Zagreb (Ba2 stable) and Belgrade (Ba3 stable) will improve their fiscal results in 2018 and 2019, as economic growth in Croatia and Serbia encourages tax revenues, although these revenues will be far more variable for Zagreb, with a positive credit rating,“ the report says.

The rating agency also points out that Belgrade has much better liquidity and significantly lower total net direct and indirect debt than the capital of Croatia.

Monthly cash reserves of Belgrade cover 2.7 times the amount of debt service costs to be paid in the next 12 months, while the available cash resources of Zagreb cover about 26 percent of the debt service costs in the same period, Moody’s concludes.

The agency adds that the direct burden of Belgrade’s debt has been steadily decreasing over the last four years and that it is likely to stabilize at a level between 45 and 50 percent of projected operating revenues by 2019.

Izvor: Novosti, Tanjug

Foto: BIZLife, Pixabay