First open meeting of the Minister of Finance Tevdovski with the journalists

Skopje, 8th June 2017 (MIA) – All liabilities can be settled from the Budget by the end of the year. There will be funds for salaries, pensions, subsidies, as well as funds for supporting the economy. Supplementary Budget is already being prepared in the Ministry of Finance, and it should also comprise funds for the projects of the new Government, among which those related to minimum salary.

This was pointed out by Minister of Finance Dragan Tevdvovski on a meeting with the journalists today, announcing the commencement of the process for VAT refund to the business sector.

- The budget account comprised total of EUR 6.5 million on 31st May 2017. Budget’s foreign currency account comprised EUR 209 million, which we will use to settle the liabilities towards abroad, thus repaying all due liabilities by the end of the year, Minister Tevdovski told the journalists today.

He stressed that activities have been undertaken aimed at releasing the VAT refund, saying that EUR 2.2 million was refunded in the first several days, being higher by twice than the average VAT refund at the beginning of the year, when Denar 1 billion to Denar 1.2 billion was paid as VAT refund.

- We should not be conservative and we should not restrain the payments. We have paid significant amount of agricultural subsidies, scholarships and VAT refund. This was aimed at boosting the economy and I hereby urge the companies to invest therein, Tevdovski said.

This process of releasing the VAT refund, according to him, will contribute to boosting the economy and achieving higher growth rates, thus leading to higher living standard.

According to the available information, there are due liabilities of over Denar 4 billion for the time being. However, he pointed out that these are only the liabilities of the direct budget users. These data does not include the liabilities of the public enterprises, the municipalities, the public health institutions and other users.

- After many years of abundant spending, the public should be informed about the exact amount of expenses, Tevdovski pointed out, adding that letters have been sent to the respective institutions, so they can provide information on the due liabilities.

He also announced that the instructions given when preparing the Supplementary Budget have been aimed at improving the spending efficiency and boosting the economy.

He expects for he Supplementary Budget to be prepared before the beginning of autumn, as it was already announced.

He believes that activities with long-term positive effects should be undertaken. - The activities undertaken should influence the situation in 2020 and 2021 when the Eurobond of around EUR 1 billion falls due, Tevdovski said, adding that the borrowings  will continue on the domestic market, since, as he explained, the interest rates therein are lower.

He believes that there is sufficient level of liquidity, as well as sufficient funds on the domestic market.

He also said that there is great cooperation with the international financial institutions, supporting the reform process in the country.