Skopje, 8 June 2000

Press release of the NBRM

NATIONAL BANK OF THE REPUBLIC OF MACEDONIA COUNCIL ADOPTED QUARTERLY REPORT ON MONETARY POLICY REALIZATION AND THE REPORT ON ACHIEVING MINIMUM CAPITAL REQUIREMENT IN THE BANKING SYSTEM FOR 2000

The NBRM Council adopted a Quarterly Report on Monetary Policy Realization on its LXXXIst session. The NBRM Council concluded that the confidence of the business entities in the banking system increased in the first quarter of 2000.  The increased confidence resulted in growth of the total non-government deposits with commercial banks.  Hence, at the end of March 2000 compared to the end of 1999, the total deposits registered a Denar 1. 596 million, or 8.7% increment. The increased banks’ deposit strengthened the process of monetary multiplication, resulting in higher growth rates of the money supply. Thus, in March 2000, the money supply M2 - Denar component increased by the Denar 7.207 million or by 37.1% on annual level. In that sence, the increase in the money supply was in line with enhanced production activity in the Republic of Macedonia in the first quarter of 2000.

At the end of March 2000, the Denar credits amounted to Denar 27.579 million and compared to December 1999 they were by Denar 720 million or by 2.7% higher. The credit activity intensification in this period is primarily due to the extension of credits for tobacco purchase. In the first quarter of 2000, the average banks’ Denar credit growth rate equaled 8.1%, on annual basis.

The NBRM Council reviewed and adopted the Information on Banks’ Compliance with the Minimum Required Founding Capital, as of April 30, 2000.  Namely, at the end of April 2000, the banks should meet the minimum capital requirement in the amount of Denar equivalent of DEM 18 million which is next-to-last year of the dynamic compliance of the banks minimum capital requirement.  Thus, the NBRM Council concluded that only Sileks Banka a.d. Skopje did not meet the criteria for conducting payment operations and credit operations with abroad out of 17 banks which conduct payment operations with abroad, on the day when the Information was reviewed. In that light, the NBRM Council decided to revoke the Sileks Banka a.d. Skopje license for conducting payment operations and credit operations with abroad.  In compliance with the law which regulates this area, the Bank should comply its operations with the measures stipulated in the Decision, within 90 days upon receipt of the decision.