Moody’s Expects Botswana’s Deficit to Continue

Diamonds.net"RAPAPORT... Moody’s Investor Service expects Botswana to remain in deficit in the short to medium term, based on the slow pace of the diamond industry’s recovery. The rating agency downgraded its outlook on the country’s A2 government bond ratings from stable to negative, explaining that the financial downturn also had a profound effect on Botswana’s economy. Kristin Lindow, Moody’s senior vice president and regional credit officer for Africa, said that Botswana’s fiscal deficit will be particularly large again next year — and possibly beyond next year — due to the cost of completing its capital expenditure projects, which are designed to promote economic diversification and the expansion of the private sector."