Pressure on the Budget Due to Guarantee Payments
The Minister of Finance, Gordana Dimitrieska-Kocoska, stated that significant pressure on the budget arises from the payment of guarantees, specifically loans for certain public enterprises and joint-stock companies owned by the state that are unable to repay the funds. During her appearance on the national television’s central news program, she emphasized that the payments of these guarantees pose a serious burden that affects the realization of investments.
“This is a serious weight on the budget stemming from guarantee payments. Due to corruption and crime, some enterprises have been destroyed, and all of this falls on the state’s shoulders. Instead of securing 100 million euros for investments in healthcare, education, and similar areas, we are repaying guarantees or loans for public enterprises that cannot meet their obligations. For instance, this year we are servicing 90 million euros just for JPD. Whereas last year this enterprise was able to pay one installment per year, now it cannot service even one,” highlighted Dimitrieska-Kocoska.
In the news on MRT, she added that this situation occurs at a time when the budget is in a difficult condition, and the state, as the last resort, must provide funds for repaying the loans. According to the minister, the bilateral loan from Hungary does not exert additional pressure on the budget, as the amount of 500 million euros was planned by the previous government.
“What we are doing is securing cheaper funds. If we had opted for issuing eurobonds, we would have received funds at an interest rate exceeding 6%, whereas this loan has an interest rate of 3.25%,” said Dimitrieska-Kocoska.
