Macedonia’s early settlement of its IMF debt is wonderful news, experts agreed in the Macedonian capital. Not only $5 million are saved and public debt is reduced with this move, but also Macedonia is sending a clear message to investors about its economic stability, which also affects the country’s international ratings, according to university professor Tome Nenovski.
If budgetary opportunities, foreign exchange reserves and calculations create favorable conditions, he said, then loans should be settled early since it could yield adequate effects.
“Early payment of the precautionary credit line creates positive effects for the state budget and foreign exchange reserves based on installments and foreign currency differences, somewhere close to $5 million, which is not something that can be disregarded. Moreover, public debt will be reduced, as it was said, by 1.7 percentage points as well as the state debt, which is a favorable impact over the entire indebtedness of the country,” said Nenovski.
Impending effects from the early debt settlement, he noted, are also very important.
“The IMF will have a positive approach because it usually monitors the movement of foreign exchange reserves and the balance of payment of a country. While approving arrangements, the organization is informed about the balance of payment and the dynamics of foreign exchange reserves,” Nenovski stated.
According to him, following this move, foreign investors will have a more positive opinion about Macedonia allowing them to make decisions for investing in Macedonia much easier.
“Undoubtedly, this will also have an effect over the country’s credit rating which will be registered by leading international organizations. Fitch Ratings has already affirmed Macedonia’s BB+ ratings with stable outlooks,” the professor concluded.
