27th January 2026, Skopje – The new Eurobond issuance does not constitute borrowing to cover spending, it is rather primarily intended to repay the existing liabilities incurred in previous period, falling due in 2026, in order to avoid risk to the stability. as emphasized by Deputy Minister of Finance, Nikolche Jankulovski, in an interview for Bloomberg Adria.
“No borrowing is made to cover spending, but mainly to repay prior debts, specifically liabilities incurred in previous period falling due this year. If the Government faces a substantial redemption profile in a given year, it must secure the necessary financing. Just as with any household or company, when a loan is falling due, it has to be settled on time or refinanced under more favourable terms and conditions, as our primary goal, thus avoiding any potential liquidity risk. Hence, the issuance of the new Eurobond on 13th January. The objective is to timely repay the Eurobond issued in 2020, and avoid additional financial burden or risk that could compromise stability,” Jankulovski underscored.
He stressed that, as so far, the 2026 fiscal policy is grounded on macroeconomic stability, fiscal consolidation, and support for economic growth—components that must remain in balance given external risks and substantial redemption profile.
Deputy Minister highlighted that the total liabilities to be repaid over the five-year period are sizable, amounting to EUR 8.8 billion, which requires a disciplined and accountable management in line with the Fiscal Strategy – a key Government’s commitment.
“In my opinion, we should not stray from our medium-term objectives, with the downward trend in the budget deficit serving as a key indicator thereof, which has been reduced from 4.5% in 2024 to 4% in 2025, being projected at 3.5% in 2026.
The projected decline in the budget deficit is expected to coincide with economic growth of 3%–3.5%. This means that consolidation is not only a result of economic activity, but also of improved projecting and structuring of expenditures,” Jankulovski emphasized.
During the interview, the Deputy Minister also reflected on the impact of making funds available under the Hungarian Loan Facility available to companies, the execution of capital expenditures, as well as the wage increase.
