The Government, at the beginning of this month, borrowed another 7.3 Euros from its own economy. Largest buyers of annual Macedonian Denar Bonds were, in general, private companies, who purchased 63% of the total raised, a sum of 5.5million euros. National debt, at the start of the month stood at 2.2 million euros, and in July a figure of 1.6 million euros.
According to Professor Vanco Uzunov, the Macedonian Government has no plans to change its policy, or politics for borrowing, something that has not been happening for just the past few months, but for years.
“This government cannot service its debts without further regular borrowing. They have to borrow to settle the existing debt, while adding a little more every time. This is the way the national debt increases, they do not intend to change their policy on borrowing, and even worse, we do not know where the money is going or being spent on. On the other hand, the economy does not generate enough in surplus revenue to repay the debt”, Uzunov also added that the actual transfer to PDIM(Pension & Disability Insurance Fund of Macedonia) costs twice as much than in salaries and administration costs.
He goes onto compare the Governments borrowing to being addicted to cigarettes.
“We all know that smoking is harmful, but we always think that the next cigarette isn’t going to be the one that kills us. This also applies to the governments borrowing, every month they borrow a little bit more, and then we become a heavily indebted country”, added Uzunov
In the opinion of university professor Tome Nenovski, the Governments borrowing from the domestic market at the beginning of the month was right on schedule and was done for budget needs.
“The governments borrowing at the beginning of the month was to cover budgetary needs and part of the deficit Sometimes the amount is higher, and sometimes it is lower”, says Nenovski.
