Skopje, 14th July 2012 (MIA) – Government will borrow less from Deutsche Bank instead of the announced EUR 250 million. Vice Prime Minister and Minister of Finance announced today that Government would borrow EUR 75 million. In the course of the year, depending on the conditions on the market, possibility for additional borrowing would be left open.

– Agreement and discussions with Deutsche Bank are in the final stage. Considering that in the past 30 days conditions on the capital market in Europe deteriorated as a result of the uncertainty regarding the elections in Greece and trends in Spain and Italy, we will most probably use the option to borrow less than the initially envisaged. In this stage, we are discussing EUR 75 million, to be obtained under favourable conditions for us, previously announced, and there is a possibility left open for later, by the end of the year, depending on the market conditions, to see whether we will borrow additional funds, the Minister said at the press conference at the Government of the Republic of Macedonia.

As for providing funds to repay the Eurobond, since it was initially announced that funds from Deutsche Bank were to be withdrawn for budget purposes and for repayment of the Eurobond, the Minister explained that the Government would continue optimizing its borrowing portfolio to the end of obtaining the best conditions. To that end, the Government envisages combination of measures for this year. Such combination includes EUR 100 million as support from the World Bank at low interest rate of 1.2%, funds from the domestic market with interest rates ranging from 4% to 4.75%, depending on maturity, as well as funds from the foreign market with around 6.8% interest. Minister Stavreski also added that these three sources of financing would be combined to the end of meeting the budget needs and continuing the policy of regular payment of liabilities towards abroad.

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