Public debt increases to 2.8 billion Euros in FYR Macedonia

Public debt increases to 2.8 billion Euros in FYR Macedonia

Skopje, May 2, 2014/ Independent Balkan News Agency

By Naser Pajaziti

Domestic and foreign debt has seen a record increase in the former Yugoslav Republic of Macedonia. Government public debt until March 31 was 2.8 billion Euros, which accounts for the 35.7% of Gross Domestic Product, indicate data published by the Ministry of Finance.

Experts say that the causes for this drastic growth relate to the strained campaign of the government to pay subsidies for farmers. Another cause is the 10 million a day worth of expenditures for three months in a row ahead of the early parliamentary elections.

In three months, public debt has increased by 92 million Euros, while in the month of March alone, the government has taken a loan of 45.2 million Euros.

Data from the Ministry of Finance indicate that compared to 2013, the government has borrowed 45.2 million Euros more.

According to this data, in the month of March 2014 alone, the government borrowed 52 million Euros from the domestic market. Thus, domestic public debt has amounted to 1.6 billion Euros.

Foreign debt in March has increased by 50 million Euros amounting to a total of 1.2 billion Euros.

If we look at the debt structure, we will notice that 56% of the debt belongs to foreign sources, while 44% belongs to domestic sources. /ibna/