Skopje, 19 May 2026 (MIA) - The latest external borrowing will be realized under significantly favorable conditions, including lower interest rates and longer repayment period, which indicates the trust of international financial institutions in the Macedonian economy, says Finance Minister Gordana Dimitrieska Kochoska.

Minister Dimitrieska Kochoska told Alfa that the law on borrowing with foreign commercial banks is currently debated in Parliament.

"The 2026 Budget clearly states that we are planning to borrow EUR 1.3 billion from abroad, of which EUR 1 billion by issuing a Eurobond, which we did at the onset of the year, with the remaining EUR 300 million provided from the external market as well. We received offers from eight banks, with the most favorable at an interest rate that is lower than the bond currently traded on the secondary market," says Dimitrieska Kochoska.

She adds that the borrowing is more favorable compared to some countries in the region, noting this is proof of improved management of public finances and trust among international creditors.

"The banks that took part in the financing come from the EU and the UK, which demonstrates that the trust of foreign financial institutions and international creditors in Macedonia is high," says Dimitrieska Kochoska.

The FinMin says the Budget also includes funds for regular servicing of the public debt, ensuring stability, predictability and timely repayment of liabilities.

"Macedonia is still under the 60-percent threshold, which puts the country in a much better position compared to some regional states and EU members. For example, Romania has a public debt of 63 percent of the GDP, Slovenia - 65 percent, Poland - 70 percent, Hungary - 75 percent," says Dimitrieska Kochoska.

On the structure of the borrowing, she says a significant portion of the funds would be used to service the existing liabilities and matured debts, a practice that all countries use in order to secure financial stability and continuity in repayment.

"The important aspect is that the Government does not use the borrowing for unproductive costs but capital investments, infrastructure and projects that produce economic growth and long-term development," says Dimitrieska Kochoska.

In parallel, the Ministry of Finance is preparing the Budget revision through intensive talks with all ministries.

"We are committed to maintaining fiscal stability and rational management of public funds," underlines Minister Dimitrieska Kochoska.

MIA file photo