Increasing Public Debt in Macedonia
The new Minister of Finance in Macedonia, Gordana Dimitrieska Kochoska, recently announced plans for new borrowing by the end of the year. However, the country has already been instantly burdened with an additional €48 million in debt through a government bond issued on July 11 with a maturity period of 15 years. When combined with the previously announced borrowing by Prime Minister Mickoski of €500 million from Hungary, the PUBLIC DEBT would reach its highest level of nearly €9 BILLION. With such a situation, will Macedonia face problems?
Debt Servicing Until 2028
When it comes to servicing the debt until 2028, citizens will have to repay 1.8 billion euros based on interest rates. This puts a strain on the budget and continues the practice of cutting capital investments each year.
Budget Rebalancing
Each year, 325 million euros earmarked for capital investments are being reallocated to other purposes, continuing the unproductive spending of public money by the government. This policy has increased the budget deficit by an additional 181 million euros.
