15th October 2022, Washington – Republic of North Macedonia implements sound and adequate economic policies. Moreover, already completed negotiations for the IMF’s Precautionary and Liquidity Line arrangement speak in favour thereof. IMF Deputy Managing Director, Bo Li, also confirmed it during the meeting with the Minister of Finance, Fatmir Besimi, which took place at IMF Headquarters in Washington.
“This is global crisis with a severe impact on the Macedonian economy which, as a small and open one, depends greatly on the developments, in particular in European context. To cope with the challenges, support is needed for the vulnerable categories, and this is exactly what the Government does with the adopted anti-crisis measures. At the same time, prudent fiscal policy is conducted, generating savings by cutting the less priority expenditures and providing funds to finance the budget deficit under optimal terms and conditions. IMF have recognized these policies and created conditions to be able to use the Precautionary and Liquidity Line arrangement”, Minister Besimi pointed out.
North Macedonia has been made available EUR 530 million under the IMF’s Precautionary and Liquidity Line arrangement, providing funds under significantly favourable terms and conditions.
“You have chosen the right instrument to curb inflation, cope with the energy crisis and fiscal consolidation”, IMF Deputy Managing Director, Bo Li, emphasized.
IMF arrangement is an important signal to the international investors, since it inspires additional confidence in the country’s sound policies. Moreover, North Macedonia managed, even in times of crisis, to ensure financing of the Budget by the end of the year with lower costs.
Financing of the planned programs and measures under the 2022 Budget was ensured, coupled with IMF funds. The respective policies and measures are aimed at safe electricity supply for the citizens and the businesses, as well as alleviating the inflation effects, in particular at the most vulnerable categories. Further on, the funds are aimed at projects and implementing reforms to provide for accelerated economic growth and raising the living standard of the citizens in the medium- and the long-term.
Minister of Finance meeting with the IMF Deputy Managing Director, Bo Li, marked the end of his stay in Washington, where he took part in the IMF/WB Annual Meetings. During his stay in Washington, the Minister had meetings with high official of the IMF, the World Bank, EBRD, IFC, the US Treasury.
At the meetings, the Minister presented the efforts and the measures the Government is undertaking to cope with the energy and price crisis, at the same time maintaining the macroeconomic stability.
During the IMF/WB Annual Meetings, Ministers of Finance, Governors of central banks, representatives of the business community, the NGOs and experts gather in one place to discuss the prevalent issues and find possibilities to overcome them.