Skopje, 11 September 2024 (MIA) – The costs that the country needs to pay for legal services fees to obtain the half-billion-euro loan from Hungary are normal procedure and are 10 times less than previous loan-related expenses, Prime Minister Hristijan Miskoski said Wednesday following reports that an independent firm chosen by the Hungarian Export-Import Bank will be compensated for legal services.

"The costs amount to 70,000 euros, which is a normal procedure and ten times less than what we have paid previously for loans. Out of the half-billion euros that will be borrowed, these 70,000 euros represent just over 0.1 percent," Mickoski said, responding to journalists' questions after a press conference at the government.

According to the proposed law, currently undergoing expedited parliamentary procedure, the Republic of North Macedonia will pay a fee for legal services to an independent firm chosen by the Hungarian Export-Import Bank. This fee is required to be paid before the tranche is withdrawn.

PM Mickoski stated that all details regarding the loan and its terms are outlined in the proposed law.

“The law outlines all the commitments we made - 3.25 percent interest rate, a three-year grace period, and a 12-year repayment period. This development law allocates half of the resources to businesses and the other half to municipal projects. So, we are fulfilling our promises,” Mickoski said.

Regarding the Eurobond issued in 2017, which is due for payment in January 2025, he said that if interest rates are higher than 3.25 percent at that time, half a billion euros will need to be withdrawn to repay this debt.

“Our analysis indicates that if we seek to refinance this €500 million Eurobond on the international market, the interest rate we could obtain would be between 5.5 and 6.5 percent. If this trend continues, and given that the European Central Bank plans to reduce interest rates by 0.25 percent, which might have a positive impact, we will go to the international market and try to secure a lower interest rate. However, if the rate is higher than 3.25 percent, we will then withdraw the additional half a billion euros to repay this debt,” Mickoski said.

Photo: Government