20th May 2025, Skopje – Under the Arrangement with the United Kingdom, the country has access to a EUR 6 billion funding framework, with the funds being disbursed as projects advance. The interest rate, currently being negotiated, is expected to be similar with the rates we have with other international financial institutions, Minister of Finance, Gordana Dimitrieska- Kochoska, pointed out in her interview for Radio Lider.
“When negotiating specific investments, funding framework must first be set – in this particular case, EUR 6 billion. However, this does not imply that the entire amount will be used immediately. Funds will be disbursed only as needed, with borrowing commencing when payments start”, Minister of Finance said, adding that it would be unjustified to draw funds and then leave them unused.
She explained that the interest rate is still being negotiated, but is expected to be lower than the 7% interest rate the Government is currently paying with respect to the implementation of Bechtel and Enka’s Corridors 8 and 10d Motorway Project.
“Paying 5% or 7% interest to finance infrastructure projects would be a heavy burden on the Budget. In this case, the interest rate will be similar to the one offered by the international financial institutions we regularly cooperate with, such as the World Bank, the European Bank for Reconstruction and Development, the European Investment Bank, and similar”, the Minister pointed out.
She reiterated that, as previously stated by the Prime Minister and the Deputy Prime Minister, the first payment is expected in 2027.
“I do not have all the project details yet, but what I can confirm is that no invoice will be issued until work is actually completed. In other words, implementation happens first and only then is payment made”, Dimitrieska-Kochoska underlined.
The Minister said the UK Government’s interest in signing this Arrangement is similar to that of other international financial institutions the country cooperates with and, most importantly, they trust the Government. Thereby, she emphasized that she cannot share detailed information about the talks, since the Arrangement falls under the Ministry of Transport and Communications, with her insights being only from an economist perspective.
The Minister highlighted that the projects are expected to have a positive effect on both the economic growth and the public debt. She also indicated that, moving forward, a reduction in public debt is expected, alongside less borrowing and a shift towards achieving budget surplus, which would allow for steady debt repayment.
As regards the funds extended under the Hungarian Loan Facility, intended as support to the private sector, i.e. the businesses, she said that terms and conditions for approving the funds to the final beneficiaries are fully disclosed in a transparent manner. She added that the Development Bank provides these funds to the commercial banks under specific terms and conditions, with the banks being responsible for approving and processing the loans, while assuming the associated risk.
