World Bank Approves Macedonia Loan

The so-called Programmatic Development Policy Loan is intended to help the country resume sustained high growth and convergence in living standards with the rest of Europe, the World Bank press release reads.

“It is designed to help the country maintain macroeconomic stability, support fiscal policy that will provide sustainable, timely, and targeted stimulus to the economy, assist the vulnerable in coping with the crisis, and maintain stability of the financial sector.” Evgenij Najdov, Senior Country Economist explained.

Following growth rates of close to 6 per ent prior to the crisis, Macedonia’s output growth stagnated over the last three quarters. Macedonia’s industrial production has been declining, with less and less money available to the businesses and business confidence shrinking.

The government hopes to have achieved a growth of minus one per cent at the end of the year with a slight acceleration of some two per cent next year. The International Monetary Fund said that the country can hope to regain its previous growth rate as of 2011.

The World Bank loan is the first in a series of two programmatic Development Policy Loans designed to be disbursed during the current and the next year.