12th November 2024, Skopje – Proceeds from the Hungarian Loan Facility are disbursed on the budget account and are not being employed at the moment. Budget account is in surplus, resulting in less than the planned borrowing on the domestic market, Minister of Finance, Gordana Dimitrieska-Kochoska, underlined in her guest appearance in “360 Stepeni” TV Show.
“Proceeds from the Hungarian Loan Facility are disbursed on the budget account and, at the moment, there is no need to use them. The budget account is in surplus, which leaves room to borrow less than the planned on the domestic market. I expect for project implementation to commence, with the Loan Facility proceeds to start to be used by the end of December. Funds remaining unemployed imply lower budget deficit, with higher budget balance to be carried forward next year. In fact, budget balance in the amount of EUR 520 million is envisaged to be carried forward under the Supplementary Budget”, Minister Dimitrieska-Kochoska said.
As she confirmed, a meeting would be held with the commercial banks, with the Macedonian Banking Association acting in the capacity of their representative, and it is expected for the terms and conditions under which the funds will be offered to the companies as final beneficiaries to be finally defined.
“Continuous meetings are held with the Macedonian Banking Association acting in the capacity of banks’ representative. Yet another meeting will be held on Sunday, being already arranged. Prime Minister will also attend this meeting, and we expect for the terms and conditions to be finally defined. The interest rate is 3.25%, i.e. it will undergo no changes. It is the interest rate payable under the Loan Facility extended by the Hungarian Export Import Bank. We had discussions about one issue, which the banks disagree – to somehow participate in subsidizing the interest, thus displaying social responsibility and sharing of such social responsibility. In fact, we do not do things any differently as with the other credit lines, considering that since 2011 onwards, EUR 650 million has been disbursed under various credit lines, in particular funds the interest rate for which has been subsidized by the government”, Minister of Finance said.
As she said, one of the banks expressed interest in both participating in interest subsidizing and the repayment period terms and conditions. That is the purpose of the Sunday meeting – to define the final terms and conditions.
“Our goal is for all banks to participate, although in practice the loan proceeds can be made available through one bank alone. However, what we aim for is to work with all banks, thus simplifying the procedure itself for the clients, i.e. making it possible for the clients to be extended the funds by the bank they work with”, the Minister said.
She also underlined that activities are being undertaken as regards the process of making the funds available, explaining that the procedure for disbursement of the funds to the budget account was to be completed first, followed by establishing the modalities for transferring the funds to the Development Bank, which is to transfer the funds to the commercial banks and the final beneficiaries.
The Minister also talked about the proceeds from the Hungarian Loan Facility intended for municipal projects. She emphasized that EUR 250 million is provided for municipal projects expected to be implemented, considering that the objective is to support already prepared projects, the effect of which would be evident quickly enough.
Envisaged capital projects are expected to be implemented next year, such as motorway sections along Corridors 8 and 10d, with Denar 12 billion being allocated therefor, implementation of municipal projects, as well as projects funded by IFIs, experiencing delays in their implementation. She underlined that there will be both no transfers to AD ESM and no problems with the electricity supply. Funds are projected under the 2025 Draft Budget for wage increase in the education and health sectors, as well as the public administration as per the signed Collective Agreements.
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