14 July, 2016 - 21:43
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”.