Skopje, 8th November 2011 (MIA) – Republic of Macedonia received offer for a loan in the amount of EUR 130 million from Deutsche Bank and Citibank under exceptionally favourable conditions, which the Government accepted at today’s session.
This was announced today by Vice Prime Minister and Minister of Finance, Zoran Stavreski, who said that the Government adopted draft law, submitted it to the Macedonian Parliament and was expected to be adopted.
The loan is with five-year bullet repayment period, interest is 4.25% at the moment, plus 0.5% guarantee fee for the World Bank. It will be repaid on one-off basis at the end of the fifth year from the day of disbursing the funds, while the disbursement itself will take place within 30 days after the Parliament adopts the Law on Indebtedness by the Republic of Macedonia.
According to Stavreski, loan conditions are exceptionally favourable, taking into account that overall costs for this loan will not exceed more than 4.8%, which is exceptionally favourable interest rate, considering the trends on the financial market.
– Such offer witnesses, one again, the recent results in the Doing Business Report, as well as the ratings affirmed by “Fitch Ratings” on overall economic policies we have implemented these years, which have contributed for the Republic of Macedonia to be rated as a stable country by the world creditors, with strong economic performance and macroeconomic policies. Therefore, even in times when the countries have difficulties having access to financial resources and no one is asking for the price, Republic of Macedonia not only received EUR 130 million, but also received the funds under exceptionally favourable conditions, Stavreski underlined.
Funds will be used to cover the budget deficit this year and next year.
When asked by the journalists, Minister Stavreski pointed out that projected growth for the next year was realistic, indicating that in the course of the year, trends and developments would be analyzed and should need arose, the authorities would react accordingly.
– Under such circumstances, each responsible government prepares different scenarios as how the developments in Europe could evolve and respectively what the consequences for the Republic of Macedonia could be. Our expectations are that with the proposed budget structure, which is development-based, paying strong attention to capital investments, as well as maintenance of stable banking sector and low level of inflation and stable exchange rate, Republic of Macedonia is exceptionally well positioned to manage the possible risks from the European crisis, Finance Minister pointed out, adding that, in the course of the year, it would be necessary to remain active, i.e. to monitor the developments and to react, if needed, accordingly.
He underlined that in all possible scenarios, the Government is confident that Macedonia, with it own policies, sound economic policies and low level of budget deficit, sound monetary policy and adequate supervision over the banking sector, is well positioned, i.e. there are no reasons for concerns by the citizens as regards the safety of the banking sector and their savings, and that Macedonia could be affected by the debt crisis. Our indicators, he pointed out, show that Macedonia is a country with low level of debt, which was confirmed by both “Fitch Ratings” and the World Bank, and that is why we have been awarded the funds from Deutsche Bank and Citibank.
The Minister underlined that as regards export, positive and negative trends are evident this, as well as next, year, i.e. the European crisis will have negative effects, however a positive factor is that the companies that invest in Macedonia in the course of this year accounted for 17% in the export, and he expected for the export to increase to more than 20% next year.
As whether the crisis will affect the unemployment in terms of its increasing, Minister Stavreski said that no such trend was expected, since even in the previous crisis, unemployment not only did not increase, but it declined.
