Former Yugoslav Republic Of Macedonia: Staff Report for the 2018 Article IV Consultation—Informational Annex

2018 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Former Yugoslav Republic of Macedonia


2018 Article IV Consultation; Press Release; Staff Report; and Statement by the Executive Director for Former Yugoslav Republic of Macedonia

Fund Relations

(As of November 26, 2018)

Missions. Article IV, Skopje, November 8–16, 2018. Concluding statement is available at:

Staff team. Jesmin Rahman (head), Jean-Guillaume Poulain and Ahmed El Ashram (both EUR), Janne Hukka (FIN), Sebastian Sosa (Resident Representative), and Gjorgji Nacevski (local economist).

Discussions. The staff team met Prime Minister Zaev, Deputy Prime Minister Angjushev, Minister of Finance Tevdovski, National Bank Governor Angelovska Bezhoska, other senior officials, and representatives of the banking, business, political and international communities.

Publication. The Macedonian authorities have indicated that they agree with publication of this staff report.

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

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Outstanding Purchases and Loans: None

Latest Financial Arrangements:

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Formerly PCL.

Projected Payments to the Fund (Expectation Basis)1

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

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Exchange Arrangement:

FYR Macedonia has accepted the obligations of Article VIII, Sections 2, 3 and 4 and currently maintains an exchange system free of restrictions on payments and transfers for current international transactions.

Article IV Consultations:

The first consultation with the FYR of Macedonia was concluded in August 1993. The last consultation was concluded on November 13, 2017 (IMF Country Report 17/354). The FYR Macedonia is on the standard 12-month Article IV consultation cycle.

Table 1.

Technical Assistance Since 2006

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IMF–World Bank Collaboration


The Bank and the Fund country teams on the Former Yugoslav Republic of Macedonia maintained 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 Country Partnership Framework (CPF) 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 (CPS) actively promotes the EU accession agenda and this represents a cross-cutting theme of the strategy. As the current CPF expires at the end of 2018, the Bank is currently in the preparation of a new CPF with a Board date scheduled for 26th of March 2019.

  • The Bank continues to be engaged in the transport sector through two projects. The National and Regional Roads Rehabilitation Project (US$ 71 million) is helping enhance the connectivity of selected national and regional roads, primarily to Corridors X and VIII, and to improve the Public Enterprise for State Roads’ capacity for road safety and climate resilience. The new Road Upgrading and Development Project’s objective (US$90.95 million) is to improve transport connectivity for road users along Corridor VIII between Kriva Palanka and Rankovce, and to improve the asset management and planning functions of the Public Enterprise for State Roads. There are two investments in the area of local government development. The first is the Municipal Services Improvement Project (MSIP) (US$75 million), which is helping to improve transparency, financial sustainability and delivery of targeted municipal services in selected municipalities. In addition to this, the EU has provided additional financing of US$17.72 million, to complement MSIP activities in rural municipalities. The high demand from the municipalities has led to a second Municipal Services Improvement Project (US$28.04 million), approved in January 2016, and effective as of July 2016. The World Bank is also active in the human development sector through the Social Services improvement project (US$33.4 millions) and the Skills Development and Innovation Support Project (US$24 million).

  • The Local and Regional Competitiveness Project is financed by an EU Trust Fund of US$19.36 million, with the objective of enhancing the contribution of tourism to local economic development and improving the capacity of the government and public entities to foster tourism growth.

Macedonia–Bank and Fund Planned Activities in Macro Critical Structural Reform Areas June 2017–May 2018

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Statistical Issues

(As of November 26, 2018)

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

(As of November 26, 2018)

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

Weighted 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.

Foreign, domestic bank and domestic nonbank financing.

The 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 quarterly but is also received on an ad-hoc basis during missions.

Currency and maturity composition is reported only on request.

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

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


When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.