Being highly reliant on oil and gas as sources of current-account receipts, the country was not immune to the fallout of the low oil prices. Indeed, current-account receipts dropped sharply which led to a large current-account deficit of more than 20% of GDP in 2016. This year, the current-account deficit is likely to narrow somewhat but would remain very large. As the authorities have introduced exchange restrictions and as short-term debt is on the rise albeit from a low level, Credendo decided to downgrade the country’s short-term political risk to category 6/7.