Skopje, 17 November 2024 (MIA) - Prime Minister Hristijan Mickoski and Finance Minister Gordana Dimitrieska-Kochoska will meet Sunday with representatives of the Macedonian Banking Association regarding the criteria under which businesses can use the EUR 250 million of the Hungarian loan.

Finance Minister Dimitrieska-Kochoska has said that only one bank has shown interest to take part in the subsidizing of the interest rate and cover the entire length of the repayment period, while adding that the Government intends to include all banks.

"The interest rate stands at 3.25 percent, there is no change to the rate under which the loan was taken from the Hungarian Export-Import Bank. The banks did not agree on taking part in the subsidizing of interest rates and thus demonstrating social responsibility. Namely, we are doing something different to what was the case before, since EUR 650 million have been withdrawn from various credit lines since 2011, funds for which the country has subsidized the interest rate," Dimitrieska-Kochoska told 360 Degrees.

PM Mickoski has voiced expectation that the meeting is successful so that the loan funds are used, expecting the banks to show social responsibility as they did during the covid and energy crisis.

"We should all work together as was the case during the covid and energy crisis. If they don't believe this is the way they should operate, it's their own decision, they are private entities and the Government cannot interfere. It was our job to secure the funds for the businesses. I expect all of us to work together for a stronger economy," said Mickoski.

Economic Chamber of North Macedonia president Branko Azeski expects a solution in the interest of the business sector.

"Businesses cannot take part in a situation where the money is on the account but one does not know what to do with them, even for a single day. I believe the Government and the banks have the capacity to solve the issue, and I hope this will benefit companies since the funds are intended specifically for them," said Azeski.

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. Half of the funds are to be allocated for capital projects in municipalities, whereas the other half is for the business sector.

MIA file photo