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Home ECONOMY

Besimi: IMF loan at one-percent interest, funds to be used for budget support

April 22, 2022
in ECONOMY, NEWSROOM, STATEMENTS
Besimi presents Draft Budget for 2022
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The loan that North Macedonia is applying for at the International Monetary Fund (IMF) will have a one-percent interest but details are yet to be defined, news agency MIA informs.

Nevertheless, the funds will be used for budget support, says Finance Minister Fatmir Besimi. Minister Besimi told Sitel TV the interest rate is significantly lower than the one the country could get through a Eurobond, which stands at 4.5-5.5 percent.

“It is an application for a loan from the IMF Precautionary and Liquidity Line, which is usually used for countries with sound economic policies, in situations that are uncertain as the current one. The line is not tied to a certain project but supports the fiscal, macroeconomic policy. A portion of the line is precautionary, namely the funds are there but are not used.

They serve to strengthen our position at the financial markets,” says Besimi, who is taking part at the IMF-World Bank Spring Meetings in Washington. He also says the budget revision will cut funds for vehicles and furniture and add funds for electricity and energy expenses.

The FinMin says the revision, which is expected to enter parliamentary procedure by the end of May, will probably lead to a deficit increase.

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