Skopje, 17 May 2024 (MIA) - Prudent monetary and macroprudential policies as well as enhanced transparency of the National Bank have played a key role in maintaining the macroeconomic stability. Inflation was brought down to single-digit level of 3.4% in the first quarter this year, foreign reserves have continued to increase reaching level which is 30% higher in comparison with the pre-pandemic period and financial stability has been further strengthened. This was reaffirmed at the meeting between the National Bank Governor, Anita Angelovska Bezhoska, and Alfred Kammer, Director of the European Department at the International Monetary Fund, on the sidelines of the high-level conference of Banka Slovenije and the International Monetary Fund, which is being held in Portoroz, Slovenia.

Kammer pointed to the prudent National Bank’s policies as key for adequate weathering of the crisis period, and it is important that they continue. This underlines the importance of maintaining central bank independence, the National Bank said in a press release.

The Governor pointed out that in one year, inflation has decreased fivefold and reduced to lower single-digit rates, while the gap between the domestic inflation and that in the euro area has significantly decreased.

“Furthermore, despite the tightening of the monetary policy, the domestic banking sector stability has been preserved, while increasing its resilience through the macroprudential measures implemented by the central bank. Over the past few crisis years, indicators show record-high capital adequacy in the past 17 years, whereas non-performing loans are near-historic lows. Credit activity, although briefly declining, still proves to be supportive to the households and the corporate sector,” the Governor said.

Governor Angelovska Bezhoska expressed her gratitude to Kammer for the valuable support that the IMF has extended to the National Bank in dealing with the recent unprecedented shocks.

Photo: National Bank