Skopje, 24th November 2015 (MIA) – By issuing the new Eurobond in the amount of EUR 270 million, Republic of Macedonia has provided funds to finance all projects and Budget needs, as well as to continue the stable trends and the stable Budget execution.

This was announced by Deputy Prime Minister and Minister of Finance, Zoran Stavreski, Tuesday afternoon, at the occasion of the issuance of the Eurobond by the Republic of Macedonia in the amount of EUR 270 million.

According to the Minister, the most important for the citizens is that this year has brought many uncertainties, much instability, a very serious political crisis, however, the only bright spot in the country was and remains to be the economy, an area in which, as he said, they will not allow any disruption whatsoever.

– All citizens, all businessmen, all final beneficiaries of budget funds, all companies working on project realization, should know that funds have been provided for smooth Budget execution. Economy in the Republic of Macedonia in 2016 will be stable, the Budget will have good liquidity, meaning all envisaged projects will be realized, including the projects encompassing construction of roads, hospitals, subsidies, sports halls, kindergartens, everything financed from the Budget, Stavreski underlined, adding that all should know that VMRO-DPMNE and the Government led by VMRO-DPMNE take accountable approach as regards the budget preparation and the provision of funds for its financing.

He encouraged the citizens to be at ease, because while VMRO-DPMNE decides on the budget policy and the needs to be financed from the Budget, there will be sufficient funds for all projects envisaged in 2016, when, as he said, the level of investments is record high, as well as is the amount for subsidies, funds for rural development, schools, hospitals and everything else.

He explained that as an accountable Government, they have to service the debt incurred by the previous Government, i.e. the Government which issued 10-year Eurobond in 2005, maturing on 8th December this year in the amount of EUR 150 million.

– We have to repay that bond and the Republic of Macedonia has to take an accountable approach towards debt servicing, regardless of whether SDSM Government or VMRO-DPMNE Government incurred it. Servicing the debt incurred under that bond was also planned before and most of the funds are provided with the previous bond issued in 2014, while smaller portion will be serviced with the funds from this new Eurobond. Thus, debt incurred by the SDSM Government will be serviced and we do not want to politicize this issue. We believe this is a normal way a state functions, Minister of Finance pointed out.

The Eurobond was issued in the amount of EUR 270 million, with 5-year repayment period and 4.875% coupon rate, i.e. yield of 5.125%.

The Minister stressed that demand for the Eurobond, issued by the Republic of Macedonia, by the investors was 2.5 times higher, reaching EUR 632 million. More than 100 investors have subscribed, most of which are from Europe and the USA, while the rest of them are from other countries. World-renowned investment banks, pension funds, insurance companies and equity funds are among the investors. The transaction was realized in cooperation with City Bank, Deutsche Bank and Erste Bank.

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