FYR Macedonia secures US$155mn

FYR Macedonia secures US$155mn

Published: January 10, 2013

The US$155mn public expenditure policy based guarantee will go towards state financial management reform, the national health system and social services.

 FYR Macedonia has agreed a US$155mn guarantee with the World Bank. The public expenditure policy based guarantee (PEPBG) will support efficiency improvements in public expenditure and financial management, the strengthening of the healthcare system, and social assistance and inclusion reforms. The guarantee will allow the country to access the capital markets in order to fill an expected financing gap in 2013.

This PEPBG is FYR Macedonia’s second. A first was approved in November 2011, raising US$169mn. The country’s short-term growth prospects have been further damaged by the escalating Eurozone crisis. This latest World Bank guarantee will back 62% of the principle of a commercial loan. This will allow the country to issue a commercial loan of US$250mn, of which US$155mn will be guaranteed by the International Bank of Development and Reconstruction.