4th April 2021, Skopje – In the course of next week, Minister of Finance Fatmir Besimi will take part in the WB and IMF Spring Meetings, which will be held virtually this year. Under the Meetings, Minister of Finance will present to the international financial institutions the economic measures for coping with COVID-19 crisis and their impact on the economy, as well as the Growth Acceleration Financing Plan, a new strategic document, being aimed at finding new mechanisms and sources of financing so as to boost the economic growth, thus also having positive effects on the fiscal consolidation, i.e. narrowing the deficit and stabilizing the public debt. In addition, the topics covered were the ongoing cooperation and the project portfolios with the international financial institutions, the progress made, as well as the expectations for the upcoming period.
Growth Acceleration Financing Plan will play a crucial role for the economy of the Republic of Macedonia, as well as the boosted job creation therein, by making use of the public investments and the funds from the official creditors to mobilize the private capital. Expected results therefrom are accelerating the economic growth by twice (from 2.5% to 5% in the medium run), keeping the level of public debt and budget deficit under the Maastricht Criteria, as well as growth of public and private investments.
Main point of this Plan is to produce a multiplier effect by creating and using new mechanisms, instruments, funds and sources of funding, i.e. in addition to the planned public investments amounting to EUR 4 billion for the period 2021-2025, multiply increased funds and private sector investments will be mobilized therefor. Accordingly, total investments in the economy will be multiply increased, thus contributing to additional acceleration of GDP growth, as well as boosted job creation.
This Plan will, in particular, underpin environmental and climate projects, innovations, as well as initiatives for a more just society.
It is planned to establish development funds, innovation support funds, Guarantee Fund, equity funds, Venture Capital Fund and similar instruments for support of export-oriented companies, small- and medium-sized enterprises, as well as social enterprises. Public-private partnerships, concessions and other instruments for financing public capital projects are also planned to be put into places, to be coupled by implementing private sector projects. These are the projects indicated within the National Investment Committee, also including new projects that may result from the initiatives taken by the public or the private sector.
IMF and WB Spring meetings are among the crucial financial events throughout the year, the goal of which is coordination among the financial authorities, the international financial institution, the private sector and the NGOs from all around the globe, being also aimed at having discussions about the challenges and the future policy actions related to global and local economic development.
Meetings among the Macedonian delegation, headed by the Minister of Finance, Fatmir Besimi and the Governor od the National Bank, Anita Angelovska-Bezoska and the World Bank Vice President for Europe and Central Asia Anna Bjerde, the Director of the European Department at the International Monetary Fund, Alfred Kammer, the Executive Director at the Constituency Office at the World Bank Group Koen Davidse, IMF Executive Director Paul Hilbers and other high-ranking officials of the World Bank and IMF, will follow next week.