Republic if Macedonia will draw upon EUR 220 million under IMF Precautionary Credit Line. As Vice Prime Minister and Minister of Finance, Zoran Stavreski, said, the Government informed the Fund on the decision to draw upon funds under the approved Precautionary Credit Line in the amount of EUR 390 million at the beginning of the year.
 
– We have reached such decision on the basis of changed circumstances, above all as regards the political situation, the certain early elections, the need to postpone the issuance of Eurobond under such circumstances, as well as from the point of view of Government accountability to anticipate such events and to undertake measures to ensure sufficient funds for regular budget execution in the coming several months during the election process, Finance Minister said.
He went on that they would not draw upon the whole amount of EUR 390 million approved under the Precautionary Credit Line, which is a confirmation that PCL is used to overcome this period of an unexpected event. A period in which there are also risks as regards the possibility to go to the Eurobond market, and it cannot be waited for the Parliament to be dismissed and the Government to function as a technical government.
 
As he underlined, measures have to be undertaken in advance so as to ensure enough funds for regular execution of all budget functions, liquidity in the economy, etc. Funds, as he pointed out, will be used for all budget needs, and they will strive for early repayment of the funds should such possibility appear.
Funds are approved under exceptionally favourable conditions, with 1.4% interest, five-year repayment period and 3-year and three-month grace period.
 
– Republic of Macedonia will remain to be partner of IMF and vice versa, IMF will remain to be partner of Macedonia as a country with sound and solid economic policies. We will strive for being committed to go to the Eurobond market in future, in particular when circumstance will be appropriate and, should such possibility occur, it is possible and we will seek to repay the funds to IMF early, the Minister underlined.
 
Asked about the announced data on GDP growth last year, Stavreski emphasized that announced figures on the economic activity leave room for contentment, since if one analyses the growth in the third quarter of 1.3% and in the fourth quarter of 2.3%, it is obvious that there is a sound trend and good start in 2011, giving real basis to believe that projected growth of 3.5 for this year will be attained.
 
– Overall growth last year was mainly result of the developments in the first half of the year. However, it is behind us. As regards the second half of the year, the growth was within our projections, Minister of Finance said, adding that GDP structure, showing growth in the construction sector of 38% and over 30% share of gross investments in GDP, there are some positive trends that can bring about the economy enter the positive zone in future.
 
He discarded the possibility for introducing floating Denar exchange rate, and as regards the demand by the business community to abolish the fee on mandatory oil reserve, he said that it would be considered and decided whether there was a possibility for such fee to be abolished.
 
He pointed out there would be no supplementary budget, while with respect to the elections, he said that equal amount of funds would be allocated as for the previous elections, i.e. Denar 240 million to Denar 300 million.
