14th November 2023, Skopje – Government of the Republic of North Macedonia conducts consistent policies for setting a trend of sustainable finances and sound basis for growth over the medium term, with such policies bringing an opportunity to the country and the Government to choose instruments under favourable terms and conditions for financing the policies, instead of high interest rates on borrowing on the financial markets. All this was recognized by the International Monetary Funds last year, allowing the country an access to funds under favourable terms and conditions under the PLL,
Minister of Finance, Fatmir Besimi, pointed out at the joint press conference with the Head of IMF Mission, Jacques Minian, following the review of the country’s economic and monetary policies under the Precautionary and Liquidity Line (PLL) and the 2023 Article IV consultation with North Macedonia.
“Amid COVID-19 crisis, energy crisis, inflation crisis and geo-strategic wars and other challenges, we faced the challenge of opting for the way to finance growth, anti-crisis measures, coping with the shock. We had a possibility to borrow on the international markets, which would have been much more costly for us and the future generations. However, we could choose and hence approached the International Monetary Fund, all to the end of improving our credit rating and creating conditions for maintaining macroeconomic stability and sound foundations for economic growth”, Minister Besimi said, adding that such option provides for EUR 30 million saving annually or EUR 300 million saving in 10 years, when the loans fall due for repayment.
According to the Minister, sound public finance management has not only been recognized by the IMF, but it also makes room for implementation of many projects in the field of health, education, infrastructure.
“What is of crucial importance is that after the IMF Mission, North Macedonia has been affirmed the policies it implements, aimed at reducing the budget deficit and creating basis for growth over the medium terms, thus accessing EUR 200 million under the PLL”, Besimi emphasized.
As emphasized during the press conference, fiscal policy the Government conducts is going well and in the right direction. Growth is expected to accelerate next year, with inflation declining.
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