Macedonian finance authorities and the IMF Mission are close to reaching an agreement on IMF’s offer for an open credit line in the amount of at least EUR 400 million, Vice Prime Minister and Finance Minister Zoran Stavreski said on Monday.
 
Final talks with the IMF delegation, led by Wes McGrew, commence today afternoon, expected to be finalized in the next couple of days with a decision to accept the offer.
 
– We are closer to reaching the decision to use IMF credit line, which offers exceptionally favorable conditions. As from what is offered and what is a general rule for such credit lines, the country will be able to use 500 percent of the quota in the first year, meaning that Macedonia can use EUR 400 million for a 12-month period. Given the fact that we are thinking of using the credit line for a period of 24 months, it is possible, during the talks, to raise the issue of increasing the total amount of EUR 400 million, Stavreski said, adding that the credit line will, in any case, be in the amount of at least EUR 400 million.
IMF offers such amount to all countries, while Macedonia, Stavreski pointed out, is the first to be offered such credit on the basis of its sound and quality economic policies.
 
According to Vice Prime Minister Stavreski, interest on the first EUR 300 million from the credit is 1.3 percentage and if the whole credit amount is used, interest would be in average 2%, i.e. 2.1%. Since it is a matter of an open credit line, he claimed, there is no conditionality by the IMF as regards the use of the funds. They would be used for budget support, i.e. to implement all budget projects.
 
– This also includes realization of ambitious capital projects envisaged for the next year in the amount of Denar 23 billion, i.e. 30 percentage more compared to this year. Credit funds would help in meeting the needs of the state without having to withdraw funds from the banking system, meaning that more funds will remain in the economy, i.e. it is a kind of replacement of borrowing in the country with this borrowing, Stavreski said when asked during the press conference on the project for Modernization of the Public Revenue Office.
 
Official acceptance and approval of the credit line by the IMF, Stavreski stated, will contribute to improving the conditions and the circumstances for possible use of the Eurobond. Such credit line, as Finance Minister explained, is a strong signal that IMF supports Macedonia, i.e. its quality policies and that the country has an alternative rather than issuing a Eurobond at any price.
 
– When the investors are aware of this, normal reaction is for this to reflect in lower prices as regards the Eurobond, being a form of strengthening our position before the investors on the market, should the conditions allow for the issuance of the Eurobond, Stavreski said.
