The financial markets positively perceive the political stabilization in Macedonia


Skopje, 21 June, 2017 - 17:21 (META) 

The markets positively perceives the stabilization of the political situation in Macedonia and the perspectives for the Macedonian economy, inform the Ministry of Finance.

They say that an indicator for this is the reduction in the rate of return of Macedonian Eurobonds traded on the international financial markets.

“Since mid-May, contribution of all three Eurobonds have been steadily decreasing. Therefor, the rate of contributions on the latest Eurobond that is due in 2023 has been above 4.5% by mid-May, and today it is decreased to 3.9%, which is historically the lowest level for this Eurobond”, said the Ministry of Finance in a statement.


Macedonia issues a Eurobond worth 450 million euros


Skopje, 20 July, 2016 - 11:00 (META) 

Today, Macedonia issued a Eurobond worth 450 million euros, with a coupon rate of 5,625% per annum and with a maturity of 7 years, which are extremely favorable terms given the complex political situation in the country, stated the Ministry of Finance.

“The funds from the bond will be used for the state budget for the years, 2016, and 2017, and to repay debts on time. The team from the Government successfully managed to provide the necessary resources which are important to maintain macroeconomic stability and the development of the Macedonian economy”, reads the statement from the Ministry of Finance.


The Eurobond is for sale a second time


Skopje, 19 July, 2016 - 17:23 (META) 

After the postponement of the sale of the Eurobond worth 650 million euros, it has been put back on the world stock exchange for a second time, according to “Reuters“.

Five days ago, Macedonia delayed the issuance of the seven-year Eurobond after a member of the opposition, the SDSM party, wrote a letter to the banks guarantors questioning the legality of the procedure.

The letter stated that the country does not have an adequate legal mechanism for issuing a Eurobond, and it might be a violation of certain laws and regulations in Macedonia.

The opposition welcomed the delay but warned of the danger of “financial crime” or resale fo the Eurobond remains.


Government delays the issuance of the euro bond


Skopje, 14 July, 2016 - 21:43 (META) 

Macedonia has postponed its seven-year euro bond after an opposition party member questioned the legality of the issuance through a letter, reports “Reuters”.

In the letter, it is asserted that the Republic may not have the proper legal authority to issue the notes, and if they are issued, laws will be broken here in Macedonia.

The opposition, the SDSM in a statement to the public, they warned that the decision for the new euro bond is illegal and after the vote of the re-balance of the budget, because the sum is 650 million euros, the number goes well over the limit for foreign borrowing, even with a new proposal for the budget, this may not be able to happen.

“To the new minister, Minovski, all government members and potential creditors, we want to warn you that the amendments that were made to the Law on Government (Official Gazette No. 196/15) were done so by force, and also done in accordance with the Pržino Agreement. This means that this euro bond, the Government is so desperate to get begore they fall from power, has to have the same procedure for the issuance of the previous euro bond from last year. Then, it would be illegal, and the bond will no longer be treated as public debt of the Republic of Macedonia”, said the statement by the SDSM.

The interim Prime Minister Emil Dimitriev stressed that the purpose of the issuance of the euro bond is to ensure the liquidity of the economic state and the timely payment of wages, pensions, and other social transfers.

“The Eurobond is not something that only takes place in this country or it is the first time. It is a normal mechanism in a situation when a country needs money for its economic liquidity. We have attempted to attain a euro bond before but were blocked because at the time we were in a situation where there was a mixed government”, said Dimitriev.

Otherwise, today, “Reuters” reported that Macedonia had offered the euro bond to the world stock exchange, and the interest would be at 5%.

The Eurobond has a seven-year benchmark, and the major banks who will be the lead managers are, “Citigroup”, “Deutsche Bank”,” Erste Group” and “Societe Generale”.


The Eurobond has been put on offer on the world stock exchange with an interest rate of 5%


Skopje, 14 July, 2016 - 15:20 (META) 

Macedonia has started marketing its Eurobond to the world stock exchange with an interest rate of 5%, reports “Reuters“. The Eurobond has a seven-year benchmark, and the major banks who will be the lead managers are, “Citigroup”, “Deutsche Bank”,” Erste Group” and “Societe Generale”.

Macedonia’s current rating is BB- (which means stable) by “Standard & Poor’s” and BB+ by Fitch.

A large number of political parties, businessmen, and experts have warned that borrowing would be devastating for Macedonia’s economy, because the money will be used for unproductive expenditures, and the debt will fall to the people to pay.


Tomorrow “Colourful Revolution” will protest against the governments new borrowing


Skopje, 10 July, 2016 - 20:12 (META) 

The “Colourful Revolution” on Monday, at 19:00, will protest against the Eurobond, which will start outside the Special Public Prosecutor’s Office.

“Protest! There is no justice when the public debt keeps doubling. Every citizen in Macedonia already owes 2.200 euros, and the regime wants to put everyone in more debt, another 330 euros. This is another desperate attempt by this criminal government to keep ruling this country. We will not allow it! We will not accept the country and its citizens to be drowned by more debt! We do not recognize the debts of these people who squandered the states money!” Said a post on the Facebook page of the “Colourful Revolution”.

The last protest by the “Colourful Revolution” was last Wednesday. It was then the citizens demanded that the Constitutional Court rule on the constitutionality of the SPO, and also demanded that political parties allow civil organizations to participate in the negotiations to resolve the crisis.


Citizens initiate petition, “No to the Eurobond”


Skopje, 10 July, 2016 - 19:56 (META) 

The website “javen.dolg.mk” (meaning public.debt) posted a link for civilians to sign a petition, “No to the Eurobond,” calling on all responsible citizens of the Republic of Macedonia to sign the petition that does not recognize the Eurobond of 650 million euros.

“I citizen / citizen of the Republic of Macedonia, I state that I do not recognize the Eurobond of 650 million euros that the government wants to issue and I do not want to pay back that debt in the years to come!” Reads the petition.

Also, in the call to sign the petition, it states that the new borrowing might reach one billion euros.

“These days, in the middle of summer, amid the political crisis, in the middle of daily protests and on the edge of elections, the government announces that it will again issue a Eurobond with a maturity of 10 years, and the maximum amount is 650 million euros. Although the interest is yet unknown, it can be assumed that it will be significantly higher than the interest on the previous Eurobond. Therefore, if the amount of the Eurobond which is worth up to 650 million, the interest is 7 percent, we will have to pay back an interest of 455 million euros. What is that for the fastest growing economy in the world, “say the initiators of the petition.


Naumov: By issuing the Eurobond, public debt will exceed 5 billion euros


Skopje, 9 July, 2016 - 21:27 (META) 

The decision to issue a Eurobond in the amount of 650 million euros is a financial crime against the citizens, the economy and it will effect future generations to come, condemned Kire Naumov from the SDSM today at a press conference.

He said that after the announcement of the issuance of the Eurobond in the amount of 650 million euros, the public debt will officially exceed 5 billion euros or 54 percent of the country’s GDP.

“It’s 5 billion euros, and it will be carried on the back of the future generations. This criminal government cut capital investments under the pretext that it was a pre-election period and borrowing increases several times in an election year. Clearly Kiril Minoski was chosen as the new Finance Minister, to be a kamikaze and to sign off on this illegal, criminal borrowing. By signing off on the issuance of the Eurobond, Minoski will be the direct executor of this financial crime. For this, Minoski and all involved after the change of government will face criminal charges. We want to inform “Citi Bank”, “Deutsche Bank”, “Erste Bank” and “Societe Generale” as agents of the publication of the announced Eurobond, that according to the Law on Government, legal norms are still in force as well as the release of the fourth Eurobond . If the same legal procedure is not respected as in the issuance of the Eurobond, then after the change of government, we will dispute this debt as a legal public debt”, said Naumov.

He added that the government can not legally carry out such decisions which effects the country in such great proportions and will put future generations in debt for years.