Macedonia Govt Denies Eurobond Postponement

According to the Ministry, in Stavreski's interview for Reuters, which was covered heavily by the media yesterday, the finance minister meant to say that the country will closely monitor the situation in the market and choose the most favorable moment for the planned move.

But the Ministry insists this will happen within the previously determined dates, that is by the end of next month.

"We will be patient because there is no urgent need for these funds, so whenever the market is ready we will be there," Stavreski said in the interview for Reuters at the EBRD's annual meeting in Zagreb.

Almost all Macedonian media outlets interpreted the statement as a confirmation that Skopje is planning to postpone the issuance of Eurobonds, which is one of the means by which the government has chosen to inject money into the struggling economy.

Stavreski said in the interview that Macedonia was planning to issue Eurobonds worth between 175 and 250 million euros for this year, but noted that the country was in no hurry as its economic indicators currently promise steady development.

Some local observers have criticized the government push towards Eurobonds and other commercial means of providing fresh money for the economy. They suggest that the country should consider getting a loan from the IMF, arguing that IMF interest rates are much lower.

Stavreski noted that Macedonia's economy shrank 0.7 per cent last year which, according to him, was a very good result considering last year’s global crisis.
 
The government and IMF foresee growth of about 2 per cent this year, which they expect will primarily be driven by the country’s flagship metal and construction industries.