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24th July 2021, Skopje – Republic of North Macedonia fully repaid the EUR 500 million Eurobond, issued in 2014, thus contributing for the debt (government and public) on this basis alone to be reduced by 4.358 p.p.. Ministry of Finance has, once, again, demonstrated its strong commitment to stabilizing the debt and its positioning within the Maastricht criteria, i.e. below 60% of GDP.

– Today, we have managed to demonstrate that the Budget is liquid. Today, we repaid EUR 500 million Eurobond, issued in 2014, for which we paid interest in the amount of EUR 20 million annually. Interest on the Eurobond issued in March this year is EUR 8 million. This is of exceptional importance so as to create a clear picture of the Budget’s condition and how we manage all programs envisaged in times of crisis, Minister of Finance, Fatmir Besimi, said at the plenary session of the Parliament, debating about the draft 2021 Supplementary Budget.

The third Eurobond in the amount of EUR 500 million was issued in July 2014, falling due in seven years, with an interest rate of 3.975%. Funds for the due Eurobond were provided through the newly issued (eighth) Eurobond in March this year, falling due in seven years and with historic low interest rate of 1.625%.

Interest rate on the eighth Eurobond (2021) is by 2.35 p.p. lower than the one on the third Eurobond issued in 2014. Interest for the eighth Eurobond was expressed by 130 investors.

The eighth Eurobond was in the amount of EUR 700 million, and the funds, in addition to repaying the third Eurobond, will be used for the needs related to coping with the impact of the COVID-19 induced crisis, i.e. as support to the health sector, as well as for the anti-crisis measures aimed at supporting the citizens and the business sector.

So far, the country has issued 8 Eurobonds on the international capital market: in 2005, 2009, 2014, 2015, 2016, 2018, 2020 and 2021. The first, the second, the third and the fourth Eurobonds are fully repaid. The fifth Eurobond fall dues in 2023, the sixth one falls due in 2025, the seventh and the eighth Eurobonds falling due in 2026 and 2028 respectively.

MoF informed that the Budget is liquid. Revenue performance is excellent, being one of the basis of the Supplementary Budgets, while expenditures are executed on regular basis and in a timely manner within the projections and the expectations. Since the beginning of the year, revenues registered increase of 15.6% compared to the same period last year. 2021 Supplementary Budget envisages 4.7% higher revenue collection compared to the initial Budget projections.

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