Tivat, 25 May 2023 (MIA) - North Macedonia maintains its microeconomic stability and persists in the reform process, simultaneously dealing with energy and price crisis challenges. In 2022, such policies enabled the International Monetary Fund (IMF) to provide access to the Precautionary and Liquidity Line (PLL), in order to deal with the crisis and maintaining stability in the medium term. The Government manages the crisis and keeps the public finances stable, and the crisis put issues of ensuring energy sufficiency, diversification of energy sources, and climate change response on a priority list, agreed Finance Minister Fatmir Besimi with Alfred Kammer, Director of the European Department at IMF, at the TIvat meeting of the IMF Constituency and the World Bank.

"We implemented significant reforms in the management of public funds. A new budget law has been passed and it is already working in accordance with the fiscal rules set up in it, i.e. they are translated into the budget and fiscal strategy, with gradual fiscal consolidation, namely, reduction of the budget deficit," said Minister Besimi.

Besimi emphasized that the tax reform is part of the public finances, as part of the new concept, which has been positively evaluated by the IMF, World Bank and the European Commission, the Ministry of Finance said in a press release.

"Tax reform means the establishment of a new modern and fair tax system, with the revision of tax preferences. The laws we worked on last year, which were completed through a broad inclusive process, have already been submitted to the Parliament, where their adoption is expected as soon as possible," the Minister added.

Referring to the crisis and the need for fiscal support to overcome the challenges that arise from it, Besimi noted that part of the activities aimed at energy efficiency and diversification of energy sources, have accelerated dynamics and that is set to lower the need of direct support from the budget. Managing challenges caused by the energy crisis and climate change are part of the Government's priority policies in the coming period and will be an integral part of the budget policy. Therefore, access to programs of international financial institutions and funds that will accelerate the energy transition and affect climate change are required.

The meeting was also attended by National Bank Governor Anita Angelovska-Bezhoska.

In addition to meeting with Kammer, Minister Besimi will also meet with the World Bank Regional Vice President Antonella Bassani, and Alfonso Garcia Mora, Vice President of the International Finance Corporation (IFC).

Within the Constituency meeting framework, Minister Besimi will attend a panel discussion along with governors of the central banks of Moldova, Armenia, and Romania, Klaas Knot, president of the Netherlands Central Bank, and Alfred Kammer, director of the European Department at IMF. ssh/ik/

Photo: Ministry of Finance