Macedonia Sets Debt Plans

The guidelines are found in a document adopted by parliament on Thursday entitled Macedonia's Public Debt Management Strategy for the period between 2010 and 2012.

These public debt levels allow Macedonia to remain in the zone of least indebted countries, Finance Minister Zoran Stavreski said while elaborating on the strategy.

The plan defines the level of public debt, state debt and the amount of issued state guarantees as well as the structure of the public debt portfolio for the three-year period.

Stavreski insisted that these figures will ensure that the country will have more free space to move in order to bridge the financial crisis which struck the world last year.

In a recent interview the finance minister revealed that the country was planning to issue Eurobonds by the end of this month. He noted that the country was in no hurry as its economic indicators currently promise steady development, adding that they will choose the best moment to make the move.

Estimates say the country will take between €175 and 250 million for this year.

Some local observers have criticized the government's 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.