IMF: Greek Debt Turmoil Won't Hurt Macedonia

The IMF pointed out that in 2010 Macedonia is expected to recover from the impact of last year’s global financial turmoil and that the large Greek national debt should not affect the work of the Macedonian banks that are in large part or completely under Greek ownership.

"They do not hold Greek government debt and have very limited reliance on their parent banks for financing," the head of the IMF mission to Macedonia, Wes McGrew, told a press conference.

Some of the largest banks in Macedonia, such as Stopanska and Alpha Bank, are majority Greek-owned.

Additionally, after last year’s economic contraction of 0.7 per cent, the IMF foresees a brighter future for Macedonia.

"The economy appears to be recovering, with growth of about 2 per cent likely in 2010," McGrew said. He noted that even greater growth is envisaged for 2011 if all goes well.

In related news, Macedonian Finance Minister Zoran Stavreski has said that his country will not stop its plans to issue Eurobonds "by the end of the second quarter." Last year Skopje issued €175 million in Eurobonds with a four-year maturity.

The Greek debt crisis, which prompted the EU and IMF to offer an unprecedented bailout package, has already made other countries from the region, including Albania and Montenegro, consider postponing their plans to issue Eurobonds.

These countries, like Macedonia, chose not to sign any contracts with the IMF last year in hopes of more costly but less restrictive crediting from commercial banks and Eurobonds.