Skopje, 23 January 2001

Press release of the NBRM

Mr. Christian Portman, the World Bank Director for the Republic of Macedonia  visited the Republic of Macedonia today. The purpose of his mission to the Republic of Macedonia was to review the overall activities of the World Bank in the Republic of Macedonia. Therefore, he visited several institutions in the Republic of Macedonia, among which the National Bank of the Republic of Macedonia.

The discussions at the meeting in the NBRM were about the status of the conditionalities for the second tranche of the FESAL 2 arrangement, which were to be fulfilled by the Central Bank. The Governor of the National Bank of the Republic of Macedonia, Mr. Ljube Trpeski, pointed out that the reforms in the banking area, financially supported with the FESAL 2 arrangement, are crucial for the development of the Macedonian economy and for achieving higher economic growth rates. Thus, they both came to a conclusion that the banking sector reforms, and accordingly, the measures that the National Bank of the Republic of Macedonia has taken, are aimed at further development of modern, sound and competitive banking system, attractive for foreign capital investments.

Furthermore, the Governor stressed that larger portion of the activities that are to be taken according to the second tranche of the FESAL 2 arrangement by March 31, 2001 (adoption of by-laws in compliance with the Banking Law) have already been adopted and are subject of testing by the commercial banks. The operations of the Problem Bank Unit within the Supervision Department of the NBRM were also discussed at the meeting. It was concluded that the problem banks have been under permanent supervision of the Central Bank and have been informed on the actions that will be taken against them if they fail to improve their operations. As far as the payment system reform is concerned, the implementation of the settlement system, so-called RTGS system of the Central Bank, is within the established timeframes.

Mr. Portman expressed his satisfaction of the extent of undertaken activities by the National Bank of the Republic of Macedonia in the area of banking system reforms, and expressed his assurance that the banking sector reforms are directed towards increase of the competition, which results in lower interest rates for the economic agents, less expensive and diversified banking services and easier, but regulated procedure for granting credits.

Upon Mr. Portman’s request, the Governor Trpeski informed him on the status of the negotiations regarding the succession of the assets of the former SFRY in BIS, Basel.

Governor’s Office