Press release of the NBRM

Skopje, 4 December 2000

EXTERNAL DEBT OF THE REPUBLIC OF MACEDONIA

Inappropriate quotation of the data on the debt of the Republic of Macedonia

Various data on the external debt of the Republic of Macedonia are used and commented in the media during the previous days, which enhanced the interest of the public and journalists in the reasons for the difference among various data. Subject of comparison are the figures prepared and disseminated by the National Bank of the Republic of Macedonia (an official data) and the figures prepared by the World Bank, which is previous (non-definitive) data, published in the study titled "The Road to Stability and Prosperity in South Eastern Europe" - A Regional Strategy Paper prepared by the World Bank, Europe and Central Asia Region, in March 2000 for the needs of the Stability Pact Conference.

The objective researchers and journalists always use the available definitive data. Thus, according to the official data, which the Republic of Macedonia submits to the international financial institutions, the amount of the debt of the Republic of Macedonia is:

December 31, 1999 - USD 1,423.82 million

June 30, 2000 - USD 1,438.07 million

September 30, 2000 - USD 1,400.78 million

There are several criteria for assessment of the degree of indebtedness of a country. Thus, based on the following parameters: position of the external debt as of December 31, 1999 in the amount of USD 1,423.82 million (middle-term and long-term) and USD 54.96 million (short-term); serviced liabilities in the amount of USD 140.84 million; payment of interest in the amount of USD 46.14 million; average domestic gross product in the amount of USD 3,579.27 million and export of goods and services in the amount of USD 1.418,25 million, the indicators of the degree of indebtedness of the Republic of Macedonia in 1999, calculated by the National Bank of the Republic of Macedonia, are the following:

1) TOTAL EXTERNAL DEBT TO GROSS DOMESTIC PRODUCT - 42.02%

According to the criteria set by the World Bank, the degree of indebtedness based on this indicator is defined as follows:

·          if the indicator exceeds 50% - the country is ranged as highly indebted

·          if the indicator ranges from 30% to 50% - the country is ranged as moderately indebted

·          if the indicator does not exceeds 30% - the country is ranged as low indebted

Considering the fact that this indicator for the Republic of Macedonia equals 42.02%, our country is ranged in the group of countries with MODERATE INDEBTEDNESS.

2) TOTAL EXTERNAL DEBT TO EXPORT OF GOODS AND SERVICES - 106.06%

According to the criteria set by the World Bank, the degree of indebtedness based on this indicator is defined as follows:

·          if the indicator exceeds 275% - the country is ranged as highly indebted

·          if the indicator ranges from 165% to 275% - the country is ranged as moderately indebted

·          if the indicator does not exceeds 165% - the country is ranged as low indebted

Considering the fact that this indicator for the Republic of Macedonia equals 106.06%, our country is ranged in the group of countries with LOW INDEBTEDNESS.

3) TOTAL DEBT SERVICING TO EXPORT OF GOODS AND SERVICES - 9.93%

According to the criteria set by the World Bank, the degree of indebtedness based on this indicator is defined as follows:

·          if the indicator exceeds 30% - the country is ranged as highly indebted

·          if the indicator ranges from 18% to 30% - the country is ranged as moderately indebted

·          if the indicator does not exceeds 18% - the country is ranged as low indebted

Considering the fact that this indicator for the Republic of Macedonia equals 9.93%, our country is ranged in the group of countries with LOW INDEBTEDNESS.

4)    TOTAL INTEREST PAYMENT TO EXPORT OF GOODS AND SERVICES - 3.25%

According to the criteria set by the World Bank, the degree of indebtedness based on this indicator is defined as follows:

·          if the indicator exceeds 20% - the country is ranged as highly indebted

·          if the indicator ranges from 12% to 20% - the country is ranged as moderately indebted

·          if the indicator does not exceeds 12% - the country is ranged as low indebted

Considering the fact that this indicator for the Republic of Macedonia equals 3.25%, our country is ranged in the group of countries with LOW INDEBTEDNESS.

According to the recommendations of the World Bank, if the degree of indebtedness in three out of four indicators is ranged within the same interval, the country will be classified in the adequate group of indebtedness. Therefore, according to the aforementioned estimations, the Republic of Macedonia belongs to the group of countries with low to moderate indebtedness, given the fact that three out of four indicators range in the first (the lowest) interval.

Governor's Office

Monetary instrument	Interest rate
Central Bank bills	5,35%
Overnight loan	5,85%
Overnight deposit	3,95%
7 days deposit facility	4,00%

Liabilities with contractual maturity of up to 2 years:
in domestic currency	8.0%
in domestic currency with FX clause	100%
in foreign currency	21%
Liabilities with contractual maturity of over 2 years:
in domestic currency	0%
in domestic currency with FX clause	100%
in foreign currency	5%

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