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Ratings versus Economic Reality2009-09-10 09:41
Investments attraction, job creation and economic growth are the domestic priorities in Georgia. The president of the country is traditionally promising economic revival: one only has to wait a bit. According to the government's statement, Georgia has overcome the economic crisis. The international rating agencies are raising the country's economical rating as well. Today, World Bank raised Georgia's position in the list of the countries providing favorable conditions for entrepreneurial activities. However, the Georgian experts are sure that the ratings do not affect the state of economy.
Georgia is several positions up in the rating of favorable conditions for entrepreneurial activities published by World Bank and the International Finance Corporation (IFC), having risen from 16th to 11th place. The rating covers the topic of business conducting in 183 countries.
As the Georgian experts underline, the success is achieved despite the last year war with Russia, which fact speaks of successful measures taken by the Georgian government on its way of reforms implementation. They believe that a high position in the rating will give Georgia an opportunity to attract new investments from abroad, as Business-Georgia informs.
Georgia occupies the highest position among the countries of the former USSR. For instance, Azerbaijan occupies the thirty-eighth position; it has moved up from the eightieth position. Armenia jumped from the eightieth position to the fortieth. The rating is still led by Singapore, New Zealand, Hong Kong and the USA.
However, many of the Georgian experts are sure that the ratings do not affect the state of economy. The Georgian media are reflecting whether the credit rating of Georgia is going to be thrown into question.
For instance, Georgian radio station Commersant reported that the authority of the major rating agencies is placed in doubt. Thus, according to the judgment delivered by the US court, Morgan Stanley bank and the two largest rating agencies Moody's Investors Service and Standard & Poor's (S&P) should defend a suit in court. The point at issue is the joint lawsuit filed by investors, who are accusing financial companies of concealing risks related to securities.