2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of North Macedonia


2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of North Macedonia

Fund Relations

(As of November 30, 2019)

Missions. Article IV, Skopje, November 6–15, 2019. Concluding statement is available at: https://www.imf.org/en/News/Articles/2019/11/17/mcs111819-republic-of-north-macedonia-staff-concluding-statement-of-the-2019-article-iv-mission

Staff team. Ms. Barkbu (head), Mr. Poulain and Ms. Lin (all EUR), Ms. Kida (FIN), Ms. Eble (Resident Representative), and Mr. Nacevski (IMF Local Economist).

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

Membership Status: Joined 12/14/1992; 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:

The de jure exchange rate arrangement is floating. Under the Law on Foreign Exchange Operations (Article 33), the denar exchange rate is freely determined on the basis of supply and demand in the foreign exchange market. However, the National Bank of the Republic of North Macedonia (NBRNM) participates in the foreign exchange market (Article 34), in order to achieve the goals of the monetary and foreign exchange policies. The NBRNM implements the monetary strategy of targeting the nominal exchange rate against the euro. The intermediary objective of the monetary policy is to maintain a stable denar exchange rate. Thus, the NBRNM maintains a stable exchange rate within a narrow band of bid-ask exchange rates determined by the Committee for Operational Monetary Policy. The de facto exchange rate arrangement is classified as a stabilized arrangement. North Macedonia has accepted the obligations of Article VIII, Sections 2, 3 and 4 and currently maintains an exchange system free of multiple currency practices and restrictions on the making of payments and transfers for current international transactions.

Article IV Consultations:

The first consultation with the Republic of North Macedonia was concluded in August 1993. The last consultation was concluded on January 23, 2019 (IMF Country Report 19/32). North Macedonia is on the standard 12-month Article IV consultation cycle.

Table 1.

Technical Assistance Since 2015

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IMF–World Bank Collaboration


The Bank and the Fund country teams on the Republic of North Macedonia maintain close collaboration, seeking synergies and harmonizing policy recommendations. The teams broadly agree in their assessment of the economic situation in the country.

Key Areas of World Bank Involvement

  • The new World Bank Country Partnership Framework (CPF) for the period 2019–2023 was adopted in April 2019. The strategic objective of the CPF is to support North Macedonia’s ability to achieve faster, inclusive, and sustainable growth and provide its citizens with greater opportunities for a better life. The CPF aims to support the Government’s program and medium-term strategy, which present a vision of accelerated economic growth with better employment opportunities, social cohesion and inclusion, and a plan to tackle the persistent bottlenecks. The CPF is also consistent with the Systematic Country Diagnostic (SCD) analysis and recommendations.

  • The CPF is based on three interconnected focus areas that will help North Macedonia improve the environment for a dynamic private sector to enhance export-led growth, strengthen human capital for inclusive development, and build sustainability. Focus Area I aim to remove some of the bottlenecks that prevent the emergence of a dynamic and competitive private sector by improving connectivity and access to markets (the first CPF objective) through activities that support “hard” and “soft” trade connectivity and strengthen local firms’ technological uptake, innovation, access to finance, and capacities. Focus Area II will support the development of human capital and skills to boost labor productivity and encourage more inclusive labor market participation. The CPF will also improve the quality and relevance of education (the second CPF objective), as well as the access to and quality of social services (the third CPF objective). Focus Area III will mitigate fiscal and environmental vulnerabilities to enhance fiscal sustainability by strengthening fiscal and public financial management (the fourth CPF objective) and environmental sustainability by helping accelerate the transition to a more sustainable energy mix (the fifth CPF objective).

  • The Government strategy is consistent with the SCD’s vision of a better-connected, vibrant domestic economy engaged in the region and beyond as it secures its footing in areas of strong comparative advantage.

Republic of North Macedonia: IBRD Lending FY 19–23

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• Note: IPF = Investment Project Financing; PforR = Program for Results.

Statistical Issues

(As of December 13, 2019)

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Republic of North Macedonia: Table of Common Indicators Required Surveillance

(As of December 12, 2019)

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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.