Government agent

The National Bank of the Republic of North Macedonia conducts the external payment operations on behalf of the Government institutions (Article 45 of the NBRM Law). In this context, the National Bank opens and keeps foreign exchange accounts for the Government institutions for the purpose of projects realization financed by foreign credits or grants.

The National Bank also operates as an agent for regulating external credit liabilities of the country (Law on Regulating the Relations Concerning Payment of Utilized Credits from International Financial Organizations). For that purpose, there is a special account which is debited with payment of due liabilities on the basis of utilized external credits of the country, and credited with foreign exchange and denar inflows on the basis of utilized external credits and grants for support of the balance of payments, as well as other payments.

The National Bank can extend credits to the Government for the needs of the Government budget up to 5% of the volume of the Budget for each year (Article 46 of the NBRM Law). These credits should be repaid in the fiscal year for which they are extended. These credits are collateralized with transferable long-term securities with market interest rate and maturity corresponding to the maturity of the credit. Until complete repayment of principal and interest of an already extended credit is done, the National Bank shall not extend new credits.

Exceptionally, the National Bank may grant a credit to the Government over 5% and with extended repayment, only if our country is indebted due to regulation of external credits or membership in public international organizations. Credits to the Government may be extended only in the framework of the Monetary Policy Projection.