Receiver: Joshua Baum, Lolomz Minister Of Economy And Trade; Stephanie Harrison-Jack, Chairman of the Lolomozain Central Bank
Sender: Hikaru Shimurazaki, Finance Secretary of the IBS
Topic: National Credit Rating Report
Hello,On behalf of the Board of Directors of the IBS, I would like to thank you for choosing the IBS. The application of Lolomz Government to be financially accredited by the IBS is our outmost honor and pleasure.
We would like to thus inform you that following evaluations by the Board of Directors and the International Services Committee of the IBS, Lolomz has since upgraded to an AA rating.
The previously considerable public debt has grown tremendously since the last registration of Lolomz, though forecasts for the reduction of national debt are applauded. In its last statement, Lolomz had 51% debt-to-GDP ratio, out of an economy of approximately NSD$ 82 trillion with an additional NSD$ 667 billion in budget deficits. IBS analysts have noted that in the information submitted in this month's registration, the debt-to-GDP ratio has declined to 49%. However, analysts note that the deficit has expanded far beyond our expectations, up to NSD$ 2 trillion for the next year, and that the budget deficit has been sustained since the last registration submitted by Lolomz. Being able to sustain economic growth using deficit spending while coupled with a contractionary monetary policy is impressive, however IBS warns that this may result in a slowdown in GDP growth should a contractionary policy be continued for too long. IBS suggests alternating between expansionary and contractionary policies, coupled with reducing the national deficit in the interim, will be able to ensure that Lolomz can reduce the chance for a default should an economic vagary strike in the future.
We would like to thank you for choosing IBS as your financial analyst and credit rater and we wish you a pleasant fiscal year.
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