26th May 2026, Skopje – On Tuesday, Parliament adopted the Law on Borrowing a Loan by the Republic of North Macedonia from five international banks, in the amount of EUR 260 million. These proceeds are intended for general budget purposes, including financing capital expenditures and refinancing items as approved by the Budget of the Republic of North Macedonia.
As elaborated to the MPs, the loan reflects the Government’s commitment to preserving macroeconomic and fiscal stability, providing continuous and uninterrupted financing of the budget purposes, as well as strategic public debt management.
Loan has been provided under favorable terms and conditions, including a seven-year repayment period, a three‑year grace period, with applicable 6-month EURIBOR variable interest rate, plus 2.10% margin, being by nearly half a percentage point lower than the interest on the other bonds listed on the secondary market.
As per the Law, the proceeds have been provided from KfW IPEX-Bank GmbH, Banco Bilbao Vizcaya Argentaria, S.A., Erste Group Bank AG, AKA Ausfuhrkredit-Gesellschaft mbH and Merrill Lynch International. Following the adoption of the Law, the Facility Agreement will be signed.
Proceeds under this loan have been provided within, and in accordance with, the borrowing on the international market as projected under the 2026 Budget, adopted by the Parliament. Proceeds will be intended for general budget purposes, including financing capital expenditures and refinancing items as approved by the Budget of the Republic of North Macedonia and the Law on Execution of the 2026 Budget of the Republic of North Macedonia.
During 2026, the Government is scheduled to repay existing debt liabilities on the basis of principal and interest in the amount of EUR 1.56 billion, in addition to financing the Budget deficit amounting to Denar 39.2 billion. In the current year, external debt falling due for repayment amounts to EUR 893 million, EUR 700 million out of which is the Eurobond issued in 2020, to be repaid in June. Domestic debt amounts to EUR 324.2 million. On the basis of interest payments alone, EUR 346 million should be repaid on both domestic and foreign market.
