Fund Relations

(As of July 07, 2015)

Membership Status: Joined 12/14/92; Article VIII

General Resources Account:

	SDR Million	Percent of Quota
Quota	68.90	100.00
Fund holdings of currency	68.90	100.92
Reserve position	0.00	0.00

View Table

	SDR Million	Percent of Quota
Quota	68.90	100.00
Fund holdings of currency	68.90	100.92
Reserve position	0.00	0.00

SDR Department:

	SDR Million	Percent of Allocation
Net cumulative allocation	65.62	100.00
Holdings	3.79	5.78

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	SDR Million	Percent of Allocation
Net cumulative allocation	65.62	100.00
Holdings	3.79	5.78

Outstanding Purchases and Loans: None

Latest Financial Arrangements:

Type	Approval Date	Expiration Date	Amount Approved (SDR Million)	Amount Drawn (SDR Million)
PLL1/	01/19/2011	01/18/2013	413.40	197.00
Stand-By	08/31/2005	08/30/2008	51.68	10.50
Stand-By	04/30/2003	08/15/2004	20.00	20.00
1/ Formerly PCL

View Table

Type	Approval Date	Expiration Date	Amount Approved (SDR Million)	Amount Drawn (SDR Million)
PLL1/	01/19/2011	01/18/2013	413.40	197.00
Stand-By	08/31/2005	08/30/2008	51.68	10.50
Stand-By	04/30/2003	08/15/2004	20.00	20.00
1/ Formerly PCL

Projected Payments to the Fund (Expectation Basis)¹

(SDR million; based on existing use of resources and present holdings of SDRs):

	Forthcoming
	2015	2016	2017	2018	2019
Principal
Charges/Interest	0.02	0.03	0.03	0.03	0.03
Total	0.02	0.03	0.03	0.03	0.03

View Table

	Forthcoming
	2015	2016	2017	2018	2019
Principal
Charges/Interest	0.02	0.03	0.03	0.03	0.03
Total	0.02	0.03	0.03	0.03	0.03

Exchange Arrangement:

The currency of the FYR of Macedonia is the denar. The FYR of Macedonia maintains a managed floating exchange rate system with a de facto stabilized arrangement against the Euro. Households can transact through commercial banks or through foreign exchange bureaus that act as agents of banks; enterprises can transact through the banking system. The reserve requirement on foreign currency deposits is set at 15 percent, while that on FX-indexed denar deposits are set at 20 percent.

At end-June 2014, the official exchange rate was 55.4 denars per U.S. dollar and 61.69 denars per euro. The FYR of Macedonia has accepted the obligations of Article VIII, Sections 2, 3, and 4 with effect from June 19, 1998.

Article IV Consultations:

The first consultation with the FYR of Macedonia was concluded in August 1993. The last consultation was concluded on August 28, 2015. The FYR Macedonia is on the standard 12-month Article IV consultation cycle.

Table 1.

Technical Assistance Since 2006

Table 1.

Technical Assistance Since 2006

Purpose	Department		Date
Banking Law	LEG/MCM		June 2006
Central Bank Law	LEG/MCM		July 2007
FX Reserves Modeling	RES/MCM		February 2012 February 2013
Macroeconomic Modeling at NBRM	MCM		March 2009 November 2009 September 2010 November 2010 May 2011 November 2011 February 2012 November 2012 March 2013 November 2013 March 2014
Liquidity, Cash and Debt Management	MCM		April 2007
Contingency Planning and Crisis Preparedness	MCM		February 2009
Stress Testing	MCM		February 2011
Domestic Debt Market Development	MCM		October 2011
Provisioning Regulation	MCM		November 2012
Monetary and FX Policy	MCM		March 2013 July 2013
Expenditure Rationalization	FAD		November 2007
Public Financial Management	FAD		September 2009
Medium-Term Budgeting	FAD		May 2011
Budgeting Framework/Payment Arrears	FAD		March 2012
Public Financial Management	FAD		November 2012
Tax Policy	FAD		September 2006 July 2007
Tax Administration	FAD		April 2007 July 2009 April 2010 June 2011 September 2013 December 2014
Tax Arrears Management	FAD		March 2013 October 2014
Tax Compliance	FAD		November 2013 March 2014 October 2014
National Accounts	STA		April 2007 January 2008
			May 2008 September 2008 December 2008 June 2009 August 2011 September 2012 March 2013 October 2013
Export and Import Deflators	STA		December 2007
GFS 2001	STA		December 2007
Government Finance Statistics	STA		October 2008
Balance of Payments Statistics	STA		October 2008
SDDS Subscription	STA		December 2010
STA TA Evaluation	STA		September 2012
Government Finance Statistics	STA		January 2015
National Accounts Statistics	STA		June 2007
Balance of Payments Statistics	STA		October 2006
Government Finance Statistics	STA		June 2006
Safeguards Assessment	FIN		February 2011
Regional Advisors
Revenue Administration	FAD		2015-
Public Financial Management	FAD		2015-
National Accounts	STA		2012-2014
Resident Experts
Tax Administration	FAD		October 2006-August 2011
Banking Supervision	MCM		May 2006-May 2008
FSAP Participation and ROSCs (since 2003)
FSAP	MCM/WB		May-June 2003
FSAP update	MCM/WB		March 2008
Data ROSC	STA		February 2004
Fiscal ROSC	FAD		February 2005

View Table

Table 1.

Technical Assistance Since 2006

Purpose	Department		Date
Banking Law	LEG/MCM		June 2006
Central Bank Law	LEG/MCM		July 2007
FX Reserves Modeling	RES/MCM		February 2012 February 2013
Macroeconomic Modeling at NBRM	MCM		March 2009 November 2009 September 2010 November 2010 May 2011 November 2011 February 2012 November 2012 March 2013 November 2013 March 2014
Liquidity, Cash and Debt Management	MCM		April 2007
Contingency Planning and Crisis Preparedness	MCM		February 2009
Stress Testing	MCM		February 2011
Domestic Debt Market Development	MCM		October 2011
Provisioning Regulation	MCM		November 2012
Monetary and FX Policy	MCM		March 2013 July 2013
Expenditure Rationalization	FAD		November 2007
Public Financial Management	FAD		September 2009
Medium-Term Budgeting	FAD		May 2011
Budgeting Framework/Payment Arrears	FAD		March 2012
Public Financial Management	FAD		November 2012
Tax Policy	FAD		September 2006 July 2007
Tax Administration	FAD		April 2007 July 2009 April 2010 June 2011 September 2013 December 2014
Tax Arrears Management	FAD		March 2013 October 2014
Tax Compliance	FAD		November 2013 March 2014 October 2014
National Accounts	STA		April 2007 January 2008
			May 2008 September 2008 December 2008 June 2009 August 2011 September 2012 March 2013 October 2013
Export and Import Deflators	STA		December 2007
GFS 2001	STA		December 2007
Government Finance Statistics	STA		October 2008
Balance of Payments Statistics	STA		October 2008
SDDS Subscription	STA		December 2010
STA TA Evaluation	STA		September 2012
Government Finance Statistics	STA		January 2015
National Accounts Statistics	STA		June 2007
Balance of Payments Statistics	STA		October 2006
Government Finance Statistics	STA		June 2006
Safeguards Assessment	FIN		February 2011
Regional Advisors
Revenue Administration	FAD		2015-
Public Financial Management	FAD		2015-
National Accounts	STA		2012-2014
Resident Experts
Tax Administration	FAD		October 2006-August 2011
Banking Supervision	MCM		May 2006-May 2008
FSAP Participation and ROSCs (since 2003)
FSAP	MCM/WB		May-June 2003
FSAP update	MCM/WB		March 2008
Data ROSC	STA		February 2004
Fiscal ROSC	FAD		February 2005

IMF–World Bank Collaboration

Background

The Bank and the Fund country teams on the Former Yugoslav Republic of Macedonia maintain close collaboration, seeking synergies and harmonizing policy recommendations. Close coordination has resulted in largely shared views of the economic situation in the country.

Key Areas of World Bank Involvement

• The World Bank program in FYR Macedonia focuses on two interrelated themes: i) Growth and Competitiveness; and ii) Skills and Inclusion. For Growth and Competitiveness, successful poverty reduction would need sustained private sector led growth, making FYR Macedonia more attractive as a destination for investments and as a country whose private companies can compete at the regional and global level. For Skills and Inclusion, the fruits of growth can be shared broadly if more Macedonians have access to better jobs and if public services are of good quality and delivered efficiently. Since FYR Macedonia’s future is clearly linked to the European integration, the Bank’s Country Partnership Strategy actively promotes the EU accession agenda and this represents a cross-cutting theme of the strategy.

• A series of two budget support operations (Competitiveness DPL) were made available to the Government with the aim to improve the competitiveness of the economy to develop a stronger export-oriented enterprise sector. The second DPL was disbursed in 2014.

• The Regional and Local Roads Program Support Project (US$105 million) and the new National and Regional Roads Rehabilitation Project (US$ 71 million) are helping with the rehabilitation of the regional and local roads and provide institutional support to improve the management of roads. The World Bank finances the energy sector through the Electric Power Development Energy Community of South East Europe Project APL3 (US$44 million) to improve the transmission grid, including an interconnection with Serbia. Local development is assisted through the Municipal Services Improvement Project (US$75 million), which is helping to improve transparency, financial sustainability and delivery of targeted municipal services in selected municipalities. The World Bank is also active in the human development sector through the Conditional Cash Transfer Project (US$25 million), and the Skills Development and Innovation Support Project (US$24 million).

• The World Bank has recently completed negotiations for the new Roads Upgrading and Development Project in the amount of EUR 83 million. The project objectives are to improve transport connectivity for road users along Corridor VIII between Skopje and Deve Bair, and to improve the asset management and planning function of Public Enterprise for State Roads.

FYR Macedonia–Bank and Fund Planned Activities in Macrocritical Structural Reform Areas June 2015–May 2016

FYR Macedonia–Bank and Fund Planned Activities in Macrocritical Structural Reform Areas June 2015–May 2016

Title	Products	Provisional Timing of Missions	Expected Delivery Date
1. Fund work	Article IV Report	Spring 2016	June 2016
	Technical assistance on Tax Compliance and Risk Management	Short-term expert visits second half of 2015	TA report after the mission
	Technical assistance on Tax Arrears Management	Short-term expert visits second half of 2015	TA report after the mission
	Technical assistance on Revenue Administration Reforms	Fall 2015	TA report after the mission
	Technical Assistance on Revenue Administration Reforms	Regular short-term visits of region-based long-term expert FY 2015
2. Bank work program	Public Expenditure Review	Ongoing, most recent mission June 2015	Report scheduled for September 2015
	Southeastern Europe Regular Economic Update	Continuous and periodic missions	June and December
	Municipal Services Improvement Project	Continuous	Project closing March 2019
	Regional and Local Roads Program Support Project	Continuous	Project closing December 2015
	National and Regional Road Rehabilitation Project	Continuous	Project closing September 2019
	Conditional Cash Transfers Project	Continuous	Project closing December 2015
	Energy Community South East Europe Adaptable Program Loan 3	Continuous	Project closing November 2015
	Balkan Financial Sector Technical Assistance Facility (TA to N BRM and MoF on bank resolution; LoLR, etc.)	Ongoing, most recent consultations with authorities May 2015	Project closing December 2015
	Skills Development and Innovation Support Project	Continuous	Project closing May 2019

View Table

FYR Macedonia–Bank and Fund Planned Activities in Macrocritical Structural Reform Areas June 2015–May 2016

Title	Products	Provisional Timing of Missions	Expected Delivery Date
1. Fund work	Article IV Report	Spring 2016	June 2016
	Technical assistance on Tax Compliance and Risk Management	Short-term expert visits second half of 2015	TA report after the mission
	Technical assistance on Tax Arrears Management	Short-term expert visits second half of 2015	TA report after the mission
	Technical assistance on Revenue Administration Reforms	Fall 2015	TA report after the mission
	Technical Assistance on Revenue Administration Reforms	Regular short-term visits of region-based long-term expert FY 2015
2. Bank work program	Public Expenditure Review	Ongoing, most recent mission June 2015	Report scheduled for September 2015
	Southeastern Europe Regular Economic Update	Continuous and periodic missions	June and December
	Municipal Services Improvement Project	Continuous	Project closing March 2019
	Regional and Local Roads Program Support Project	Continuous	Project closing December 2015
	National and Regional Road Rehabilitation Project	Continuous	Project closing September 2019
	Conditional Cash Transfers Project	Continuous	Project closing December 2015
	Energy Community South East Europe Adaptable Program Loan 3	Continuous	Project closing November 2015
	Balkan Financial Sector Technical Assistance Facility (TA to N BRM and MoF on bank resolution; LoLR, etc.)	Ongoing, most recent consultations with authorities May 2015	Project closing December 2015
	Skills Development and Innovation Support Project	Continuous	Project closing May 2019

Statistical Issues

(As of August 6, 2015)

I. Assessment of Data Adequacy for Surveillance
General: Data provision has some shortcomings but is broadly adequate for surveillance. Areas that would benefit most from further improvement are national accounts and government finance statistics.
National accounts: The quality of national account measurement needs to improve. Some discrepancies between GDP and its components, as well as between annual and quarterly figures remain. Timely and consistent provision of data is still an issue. In 2013, by the decision of the Government of FYR Macedonia, amendments were made to the National Classification of Activities—NKD Rev.2—which entailed significant changes in the decomposition of historical data. The primary objective was to make Macedonian national statistics comparable with that of other European countries, for example, ensuring that the content and structure of national statistics is completely harmonized with the European Classification of Activities NACE Rev.2.
Price statistics: Improvements to the CPI have been introduced in accordance with international standards and EU regulations to align the Classification of Individual Consumption According to Purpose (COICOP).
Government finance statistics: Debt data on a disaggregated basis for the broader public sector are not available on a regular basis. Macedonia does not report government finance statistics to the Fund for publication in either the Government Finance Statistics Yearbook (GFSY) or the International Financial Statistics (IFS).
Monetary sector: EUR receives a monthly electronic report of monetary statistics, covering the balance sheet of the central bank, the commercial banks and other depository corporations.
External sector: External sector statistics meet international standards. In additional to monthly balance of payments data, the authorities compile and disseminate international investment position (IIP) data, reserve assets and foreign currency liquidity data, and external debt statistics.
II. Data Standards and Quality
FYR Macedonia participates in the General Data Dissemination System (GDDS), and, since November 2011, in the Special Data Dissemination Standard (SDDS).	Data ROSC published on September 29, 2004.

View Table

I. Assessment of Data Adequacy for Surveillance
General: Data provision has some shortcomings but is broadly adequate for surveillance. Areas that would benefit most from further improvement are national accounts and government finance statistics.
National accounts: The quality of national account measurement needs to improve. Some discrepancies between GDP and its components, as well as between annual and quarterly figures remain. Timely and consistent provision of data is still an issue. In 2013, by the decision of the Government of FYR Macedonia, amendments were made to the National Classification of Activities—NKD Rev.2—which entailed significant changes in the decomposition of historical data. The primary objective was to make Macedonian national statistics comparable with that of other European countries, for example, ensuring that the content and structure of national statistics is completely harmonized with the European Classification of Activities NACE Rev.2.
Price statistics: Improvements to the CPI have been introduced in accordance with international standards and EU regulations to align the Classification of Individual Consumption According to Purpose (COICOP).
Government finance statistics: Debt data on a disaggregated basis for the broader public sector are not available on a regular basis. Macedonia does not report government finance statistics to the Fund for publication in either the Government Finance Statistics Yearbook (GFSY) or the International Financial Statistics (IFS).
Monetary sector: EUR receives a monthly electronic report of monetary statistics, covering the balance sheet of the central bank, the commercial banks and other depository corporations.
External sector: External sector statistics meet international standards. In additional to monthly balance of payments data, the authorities compile and disseminate international investment position (IIP) data, reserve assets and foreign currency liquidity data, and external debt statistics.
II. Data Standards and Quality
FYR Macedonia participates in the General Data Dissemination System (GDDS), and, since November 2011, in the Special Data Dissemination Standard (SDDS).	Data ROSC published on September 29, 2004.

Former Yugoslav Republic of Macedonia: Table of Common Indicators Required for Surveillance

(As of August 6, 2015)

¹Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

²Weighted interest rates on loans and deposits in domestic banks. Separately, data is submitted on the rates on central bank bills (policy rate) and treasury bills, notes, and bonds.

³Foreign, domestic bank, and domestic nonbank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments. Data including local governments is normally published annually but is also received on an ad-hoc basis during missions.

⁵Currency and maturity composition is reported only on request.

⁶Includes external gross financial asset and liability positions vis-à-vis nonresidents.

⁷Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).

⁸Reflects the assessment provided in the data ROSC or the Substantive Update (published on September 29, 2004; mission took place during February 18 – March 3, 2004). The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), or not observed (NO).

⁹Same as footnote 8, except referring to international standards concerning source data, assessment and validation of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.

Former Yugoslav Republic of Macedonia: Table of Common Indicators Required for Surveillance

(As of August 6, 2015)

	Date of Latest Observation	Date Received	Frequency of Data7	Frequency of Reporting7	Frequency of Publication7	Memo Items:
						Data Quality- Methodological Soundness8	Data Quality- Accuracy and Reliability9
Exchange Rates	8/5/15	8/6/15	D	W	D
International Reserve Assets and Reserve Liabilities of the Monetary Authorities1	6/30/15	7/14/15	D	W	M
Reserve/Base Money	Jun. 15	7/21/15	M	M	M	O, LO, LO, O	O, LO, O, O, O
Broad Money	Jun. 15	7/21/15	M	M	M
Central Bank Balance Sheet	Jun. 15	7/21/15	M	M	M
Consolidated Balance Sheet of the Banking System	Jun. 15	7/21/15	M	M	M
Interest Rates2	Jun. 15	7/31/15	M	M	M
Consumer Price Index	May 15	6/08/15	M	M	M	O, O, O, LO	LO, O, LNO, O, LO
Revenue, Expenditure, Balance and Composition of Financing3 - General Government4	Dec. 14	Mar. 15	A	A	A	LO, LNO, LO, O	LO, LO, LO, LO, LNO
Revenue, Expenditure, Balance and Composition of Financing3- Central Government	June 30	8/01/15	M	M	M
Stocks of Central Government and Central Government-Guaranteed Debt5	Mar. 15	Apr. 15	Q	Q	Q
External Current Account Balance	May 15	7/31/15	M	M	M	O, LO, O, LO	LO, O, LO, O, LO
Exports and Imports of Goods and Services	May 15	7/31/15	M	M	M
GDP/GNP	Mar. 15	6/12/15	Q	Q	Q	O, LO, O, LO	LO, O, LNO, O, O
Gross External Debt	Mar. 15	Jun. 15	Q	Q	Q
International Investment Position6	Mar. 15	Jun. 15	Q	Q	Q

¹Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

²Weighted interest rates on loans and deposits in domestic banks. Separately, data is submitted on the rates on central bank bills (policy rate) and treasury bills, notes, and bonds.

³Foreign, domestic bank, and domestic nonbank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments. Data including local governments is normally published annually but is also received on an ad-hoc basis during missions.

⁵Currency and maturity composition is reported only on request.

⁶Includes external gross financial asset and liability positions vis-à-vis nonresidents.

⁷Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).

⁸Reflects the assessment provided in the data ROSC or the Substantive Update (published on September 29, 2004; mission took place during February 18 – March 3, 2004). The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), or not observed (NO).

⁹Same as footnote 8, except referring to international standards concerning source data, assessment and validation of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.

View Table

Former Yugoslav Republic of Macedonia: Table of Common Indicators Required for Surveillance

(As of August 6, 2015)

	Date of Latest Observation	Date Received	Frequency of Data7	Frequency of Reporting7	Frequency of Publication7	Memo Items:
						Data Quality- Methodological Soundness8	Data Quality- Accuracy and Reliability9
Exchange Rates	8/5/15	8/6/15	D	W	D
International Reserve Assets and Reserve Liabilities of the Monetary Authorities1	6/30/15	7/14/15	D	W	M
Reserve/Base Money	Jun. 15	7/21/15	M	M	M	O, LO, LO, O	O, LO, O, O, O
Broad Money	Jun. 15	7/21/15	M	M	M
Central Bank Balance Sheet	Jun. 15	7/21/15	M	M	M
Consolidated Balance Sheet of the Banking System	Jun. 15	7/21/15	M	M	M
Interest Rates2	Jun. 15	7/31/15	M	M	M
Consumer Price Index	May 15	6/08/15	M	M	M	O, O, O, LO	LO, O, LNO, O, LO
Revenue, Expenditure, Balance and Composition of Financing3 - General Government4	Dec. 14	Mar. 15	A	A	A	LO, LNO, LO, O	LO, LO, LO, LO, LNO
Revenue, Expenditure, Balance and Composition of Financing3- Central Government	June 30	8/01/15	M	M	M
Stocks of Central Government and Central Government-Guaranteed Debt5	Mar. 15	Apr. 15	Q	Q	Q
External Current Account Balance	May 15	7/31/15	M	M	M	O, LO, O, LO	LO, O, LO, O, LO
Exports and Imports of Goods and Services	May 15	7/31/15	M	M	M
GDP/GNP	Mar. 15	6/12/15	Q	Q	Q	O, LO, O, LO	LO, O, LNO, O, O
Gross External Debt	Mar. 15	Jun. 15	Q	Q	Q
International Investment Position6	Mar. 15	Jun. 15	Q	Q	Q

¹Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

²Weighted interest rates on loans and deposits in domestic banks. Separately, data is submitted on the rates on central bank bills (policy rate) and treasury bills, notes, and bonds.

³Foreign, domestic bank, and domestic nonbank financing.

⁴The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments. Data including local governments is normally published annually but is also received on an ad-hoc basis during missions.

⁵Currency and maturity composition is reported only on request.

⁶Includes external gross financial asset and liability positions vis-à-vis nonresidents.

⁷Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).

⁸Reflects the assessment provided in the data ROSC or the Substantive Update (published on September 29, 2004; mission took place during February 18 – March 3, 2004). The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O), largely observed (LO), largely not observed (LNO), or not observed (NO).

⁹Same as footnote 8, except referring to international standards concerning source data, assessment and validation of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.