Government in FYROM to borrow 500 million euros

Government in FYROM to borrow 500 million euros

Skopje, 5 November 2015/Independent Balkan News Agency

By Naser Pajaziti

Until the end of this year, government in FYR Macedonia will borrow 500 million euros. This debt is secured by emitting a euro bond in the international market. The bond has a maturity of 10 years.

The government says that this amount is being borrowed to pay debts and loans which are due to be paid this year and next year.

Since 2005, governments in FYROM have applied a system of euro bonds to cover state budget holes and to pay previous loans.

But, the recent amount of 500 million euros is considered to be high and its interest rate of 4% is also considered to be high.

Economists estimate that in a period of ten years, the government must pay back an amount of 700 million euros, due to the high interest rate. /ibna/