International Monetary Fund. Monetary and Capital Markets Department
The National Bank of the Republic of North Macedonia (NBRNM) is implementing advanced transparency practices. The long-standing commitment to transparency noted by a number of stakeholders and forcefully re-affirmed in the recent period is well anchored in the law, and it has been designated by the NBRNM as a strategic objective to fulfill its mandate. This policy has earned the NBRNM noteworthy trust from stakeholders met by the mission, and it has paid significant dividends in terms of anchoring its autonomy and ensuring policy effectiveness.
The report says that Macedonia continues to pursue sound economic policies that are consistent with the program supported by the Precautionary Credit Line (PCL) arrangement. The authorities strengthened debt management policies and improved access to external funding and developed a domestic public debt market. This will help Macedonia to meet its financing needs from private market sources in future. The PCL plays a valuable role in supporting market confidence by signaling Macedonia’s commitment to prudent policies and strengthening its reserve buffers.
In this study, economic recovery and growth of Macedonia are discussed. In the financial sector, nonperforming loans (NPLs) rose, and bank profitability declined as a result of the crisis. Executive Directors agreed with the thrust of the staff appraisal. Directors were encouraged by the overall healthy condition of the financial system. The need to accelerate structural reforms and strengthen public infrastructure to raise productivity and help reduce high unemployment is encouraged. Macedonia met the Precautionary Credit Line (PCL) qualification requirements.
This paper evaluates the 2003 Article IV Consultation and a Request for a Stand-By Arrangement (SBA) for the Former Yugoslav Republic of Macedonia (FYRM). The Article IV policy discussions focused on regaining a sustainable fiscal and external position, restarting economic growth and job creation, and addressing vulnerabilities resulting from public sector indebtedness, banking sector fragility, and euroization of bank and government balance sheets. FYRM has also requested IMF support of the program under an SBA in the amount SDR 20 million.