Skopje, 17 November 2024 (MIA) - Prime Minister Hristijan Mickoski said after Sunday's meeting with the Macedonian Banking Association that both sides have expressed will to bring positions closer when it comes to the criteria under which the business sector would use the EUR 250 million from the Hungarian loan.

"Regarding the interest rate, talks will continue and I expect to have a stance on this issue by the end of next week, so that we finally start to apply this to the economy. We are approximating our positions. I would refrain from talking about percentages but more about the expressed will of both sides to bring positions closer," said PM Mickoski.

According to him, the Government would surely pay the 3.25-percent rate under which the loan has been taken.

"Maybe in a few years we would issue a Eurobond used for early repayment of the loan, because we know there is no interest rate there. We can decide to use other mechanisms as well, depending on the state's interest. The goal is to have as much as lower interest rate offered by banks so that businesses get a lower rate. Banks have costs, but let's see how we can cut those costs, of course depending on the central bank's policies. That is why I refrain from talking about percentages just yet. Let's bring our positions closer and then we will come out with an official statement," said Mickoski.

The PM added that the meeting focused on the Hungarian loan funds, namely the repayment period, the banks' will to take part in the project, and the interest rate.

"Their will to take part is unquestionable, and they all expressed the wish and readiness to be involved in the process. On the repayment period, we had a common position that depending on the clients' requirements, we will use the wording 'grace period of up to three years and repayment period of up to 15 years', since the Macedonian Banking Association members said they have certain clients that might want a shorter repayment period," noted Mickoski.

The EUR 500 million loan was agreed by PM Mickoski and Hungarian counterpart Viktor Orban during this year's NATO Summit in Washington. The law for the loan was adopted by Parliament on September 17 through an expedited procedure. The loan has a 3.25-percent interest rate, a three-year grace period and a 12-year repayment period. Half of the funds are to be allocated for capital projects in municipalities, whereas the other half is for the business sector.

Photo: Government