Tevdovski: We make efforts to provide as lower borrowing costs as possible

Skopje, 28th July 2017 (MIA) – Public debt is significantly increased, and activities have to be undertaken to resolve this issue.  Our efforts will be aimed at providing as lower borrowing costs as possible, i.e. as lower interest rate as possible, which will be paid by the citizens, Minister of Finance Dragan Tevdovski said today.

At the press-conference, Tevdovski stressed that the Ministry remains open, publicly saying that there the borrowings will continue, above all on the domestic market, where the interest rates are lower.  At the same time, as he said, the developments on international capital market are being followed, so as to possibly issue Eurobond under the most favourable conditions for the next 2018.

- We plan to continue the domestic borrowing, however, we constantly monitor the developments, and we do not exclude the possibility to borrow on the international capital market, if we believe lowest costs will be paid at that precise moment. At present, we are thinking how to cover financially 2018 budget year, however, the public should be sure, that as a result of our plan and these conditions on the domestic market, we will be able to cover financially this budget year without any problems, Minister said.

In order to execute the constant 2017 budget expenditures. Ministry of Finance will increase net issuance of domestic government securities. At the same time, the auctions of government securities will be reduced to twice a month.

- We are doing this in order to encourage trading on the secondary market, for which investors will apply, needing liquid assets of shorter maturities, being offered at the regular state auctions, Minister explained.

Answering journalist’s question, he mentioned once again that there are EUR 203 million available from the previous bond, which funds are envisaged to be used to financially cover the old foreign borrowings.

Tevdovski stressed that from the moment the new Government took office, Ministry of Finance did not create new debt, but it rather reissued the government securities falling due at that moment.