Skopje, 25 February 2000

Press release of the NBRM

VISIT OF THE GOVERNOR OF THE BANK OF GREECE MR. LUCAS PAPADEMOS TO THE NATIONAL BANK OF THE REPUBLIC OF MACEDONIA

From February 24 to 26, 2000, upon invitation of Governor Trpeski, the Governor of the Bank of Greece, Mr. Lucas Papademos visited the National Bank of the Republic of Macedonia. The reason for Mr. Papademos’s visit to the National Bank of the Republic of Macedonia is the constant progress in the economic and political relations between the Republic of Greece and the Republic of Macedonia during the past few years.

Namely, Republic of Greece is the third most important partner of the Republic of Macedonia with share in the total foreign trade of 8.3%. Although presently the export of Macedonian goods to Greece is twice lower than the import of Greek products, which is normal considering the level of development of both economies, the approach of the Republic of Macedonia toward the European integrations and the speed-up of the process of transition is expected to lead to more balanced relation in the exchange and to an increased volume of foreign trade between the two neighboring countries.

Simultaneously, the investors from the Republic of Greece have had a leading position in the current inflow of foreign investments in the Republic of Macedonia. They are present in the tobacco industry, textile industry, food industry, and what is lately of a special importance - in the banking industry. It is expected that the inflow of Greek capital and experts into the Macedonian banking system will strengthen the competitiveness, introduce new and modern banking products and act as a generator for acceleration of the reforms in banking.

At the meetings, the two governors expressed their determination, having in mind the entrance of Greek banks into the banking system of the Republic of Macedonia, to strengthen the cooperation especially in the area of supervision, through examination of the operations of foreign banks active on the territories of both countries and to exchange data on the condition of the banking systems. Both governors expressed their readiness for cooperation and exchange of data in the area of balance of payments statistics. Simultaneously, having in mind the commenced process of association and membership of the Republic of Macedonia in the European Union, the Bank of Greece expressed its readiness for cooperation and assistance in the adjustment of Macedonian banking regulations to the existing European banking regulations.

Both governors agreed to assist in speeding up the realization of the funds intended for aid and reconstruction of the countries in the region approved by the Government of the Republic of Greece for the period 2000 - 2004.

During the visit to the Republic of Macedonia, Mr. Papademos was received by the President of the Government of the Republic of Macedonia, Mr. Ljupco Georgievski, the President of the Macedonian Parliament, Mr. Savo Klimovski and the Minister of Finance, Mr. Nikola Gruevski.

Governor’s Office