The reports on the operations of the National Bank of the Republic of Macedonia for 2002 adopted
Skopje, 21 May 2003
Press release of the NBRM
The reports on the operations of the National Bank of the Republic of Macedonia for 2002 adopted
The Council of the National Bank of the Republic of Macedonia, reviewed and adopted the NBRM Annual Report for the year 2002, the Report on Banking Supervision and Banking System of the Republic of Macedonia in 2002, the Report on Handling the Foreign Exchange Reserves of the Republic of Macedonia in 2002 and the Report on the Operations of the Internal Audit Department in 2002, on its IV session held on May 21, 2003. The NBRM Council underlined that the annual reports of the National Bank of the Republic of Macedonia represent real, comprehensive and professionally prepared workpapers.
The NBRM Annual Report states that 2002 was a year in which the economy was expected to recover, after the security and the economic crisis in 2001. The modest real increase in the GDP of 0.7% in 2002 affirmed that a longer period is necessary for full recovery of the economy. Given the low performances of the real sector of the economy, the considerably increased imports and the pressures on the foreign exchange market, as well as the expansive budget spending (particularly in the pre-election period), the National Bank of the Republic of Macedonia fulfilled its legal obligation - preserving the price stability by maintaining the stability of the exchange rate of the Denar against the Euro. Thus, in 2002, the average inflation rate equaled 1.8%. At the end of 2002, the foreign exchange reserves of the NBRM ensured 4.5 months imports coverage.
The NBRM monetary policy in 2002 was flexibly adapted to the overall environment, directed towards gradual relaxing, alongside the normalization of the conditions in the economy. In 2002, the deposits with the banks permanently increased (only one third of the inflow was withdrawn), while the total placements of the banks with the non-government sector increased by 7.8%.
The Report on Banking Supervision and Banking System of the Republic of Macedonia in 2002 emphasizes the continuous endeavors of the NBRM for active supervision of the operations of the banking system. Additionally, it underlines the positive trends in the banking system with regard to the improvement of the bank portfolio quality. In 2002, the share of the risky placements in the banks’ total placements reduced to 15.9%.
The NBRM Council was also informed on the current activities of the National Bank of the Republic of Macedonia performed during the operations of this institution.
Governor’s Office