Skopje, 24th September 2012 (MIA) – Promises for repayment of liabilities to the business sector, increase of pensions and social assistance have been made according to precise analyses and the 2013 Budget will include exact amounts for their financing.
This was pointed out by Vice Prime Minister and Minister of Finance Zoran Stavreski answering journalists’ question regarding yesterday’s package of measures announced by Prime Minister Nikola Gruevski on a meeting with the businessmen.
– Promise has been made on the basis of extensive, serious and carefully carried out calculations and preparations before reaching the phase to present them. We made analyses, we contacted international financial institutions, we discussed the manner, in which funds will be provided to realize the overall financing of the Budget for next year, including all these activities and major infrastructure projects. We set the basis of the fiscal policy and the next year’s budget. Only after we have done all this and were sure we have sustainable way of financing the Budget, and that, even with such promises, we remain within the fiscal discipline, which is a feature of our Government and our country, we have made the promise As regards the Budget, precise calculations are made and it will include exact amounts for all these needs and for all activities, mentioned by Prime Minister yesterday, Minister Stavreski pointed out.
He pointed out that the funds to be provided by commercial banks under a guarantee by the World Bank, will be used to finance the overall budget deficit, i.e. all infrastructure projects, major capital projects, debt repayment, increase of pensions, and similar. Funds we will obtain, which at this stage amount to around EUR 200 to EUR 250 million, will be intended for all Budget needs, Stavreski said, adding that the funds will be received in January 2013 and will be intended for financing the 2013 Budget and, depending on the circumstances, portion of the funds can be used in 2014.
– Funds we are to provide and that are with a preferential interest rate of 4.5%, compared to the real market interest rate Macedonia would pay – 8%-9%, will be intended for financing the 2013 Budget, and, depending on the circumstances, portion of them can be used in 2014 too. In 2013, these funds will be used to pay the bond falling due in January 2013, for infrastructure projects, for settling debts to the business sector, increasing of pensions, subsidies and similar. Overall package is designed in a way that the credit we will obtain is part of the package for financing the Budget for next year and, depending on the collection of regular revenues, we can save them for 2014, as we have savings from the funds, being previously extended by Deutsche Bank and similar, Minister of Finance stated.
He stressed that neither Supplementary budget nor decision is planned for this year, believing that the opposition’s proposal for a Supplementary Budget is not good since it would mean additional deepening of the problems for the economy. We think that the state should provide support by completely realizing capital investments and executing all budget expenditures in order to maintain the aggregate demand at a higher level. Therefore, after consulting the businessmen, we have suggested to give support by fully executing the expenditures with no Supplementary Budget, Stavreski said.
He pointed out that there will be no additional borrowing for this year and that there are sufficient funds to finance the Budget for this year.
According to him, companies will feel significant improvement of liquidity on the basis of these Government’s promises. Our promise is serious and will remain committed to what we promised, to settle the debts to the last penny by February. We have started settling the liabilities as of today and we will pay part of them by November, Minister of Finance Zoran Stavreski said, adding that the amount of the debt constantly changes depending on the liabilities of budget users.