13th October 2023, Marrakesh – Republic of North Macedonia implements sound macroeconomic policies, which the International Monetary Fund confirmed last year by approving access of our country to the Precautionary and Liquidity Line (PLL). Funds under favourable terms and conditions through PLL are both basis for, and provide guarantee for, implementing such policies in the coming period as well, Minister of Finance, Fatmir Besimi, said, at the meeting with the Deputy Managing Director at the IMF, Bo Li, within the IMF/WBG Annual Meetings held in Marrakesh, Morocco.
“Last year, the International Monetary Fund made EUR 530 million available to the Republic of North Macedonia through the Precautionary and Liquidity Line (PLL). It was part of our efforts, amid high costs of borrowing on the financial markets, to ensure funds under the most favourable terms and conditions, on one hand, receiving a confirmation for the sound policies we implement, on the other. EUR 110 million has been already withdrawn and deployed for managing the energy crisis and the inflation”, Minister Besimi said.
He underlined the commitment to ensuring financing of the Budget under the most favourable terms and conditions, including gradual fiscal consolidation and reduction of the budget deficit.
“Fiscal policy envisages gradual fiscal consolidation. 2023 budget deficit of 4.6%, as projected, is envisaged to come down to 3.4% in 2024, 3% of GDP in 2025, dropping to 2.5% in 2028”, Besimi emphasized, also pointing out that share of capital expenditures increased to 5% of GDP annually, being of key importance for generating higher economic growth rates.
As underlined during the meeting, all liabilities are regularly settled. Budget deficit remains at the same level in nominal terms, regardless of the reallocation of funds pertaining to the payment of increased wages in the public administration and increased pensions. Measures to cope with the prices and energy crisis are also being designed, with EUR 225 million allocated in the Budget and additional Denar 4.55 billion being reallocated therefore.