Skopje, 20 February 2003
Press release of the NBRM
At the first session held this year, the Governor of the National Bank of the Republic of Macedonia informed the National Bank of the Republic of Macedonia Council about the outcome of the negotiations with the International Monetary Fund regarding the agreed Stand-by arrangement. The Governor stressed that contrary to the two previous years when the main burden for maintaining the macroeconomic stability was born by the monetary policy, which had o be restrictive and accompanied by high interest rates, this year, taking into consideration the fact that the fiscal policy assumes its part of the responsibility in maintaining the macroeconomic stability, the monetary policy will be much more relaxed, which will reflect through the increased possibility for granting credits and decreasing the interest rates. In that regard, the National Bank of the Republic of Macedonia Council adopted a Decision on decreasing the interest rates set by the National Bank of the Republic of Macedonia, today.
Thus, the interest rate on the Lombard Credits (credits the NBRM extends to banks as a lender of last resort) declined from 23% to 17.5% annually. The possibility of using the Lombard Credit is also increased, which means that the banks can use this instrument of the NBRM in an unlimited number of days during the month. The discount rate will decrease from 10.7% to 8% on annual basis. Hence, the legal penalty interest will be reduced from 32.1% to 24%.
The National Bank of the Republic of Macedonia Council assessed that the reduction of the interest rates will contribute to the decrease in the lending interest rates of the commercial banks and that the banks should follow this signal of the National Bank of the Republic of Macedonia.
The Council was also informed that the policy the National Bank of the Republic of Macedonia conducts regarding the CB bills auctions, contributed the interest rate of the CB bills to decline from 20% to 12.8% at the auction held on February 19, 2003, with a tendency of further decrement. Thus, as a second stage of the gradual decrease in the interest rates of the National Bank of the Republic of Macedonia, the NBRM intends to adopt a Decision on decreasing the interest rates of the CB bills through change in the type of the tender, i.e. by using the volume tender, instead of the current interest rate tender, at its next session.
Depending on the movements in the prices, as well as the movements on the foreign exchange market in the following months, further decrease in the interest rates of the National Bank of the Republic of Macedonia is expected.
Regarding the more frequent occasions of non-accepting cheques from certain banks by a certain number of entities in the payment operations, the National Bank of the Republic of Macedonia Council decided to request from the Ministry of Finance to initiate an immediate procedure for amending the Law on Payment Operations, regarding the inclusion of penalty provisions for those entities, which reject to receive cheques from banks.
Governor’s Office