Skopje, 8 October 2024 (MIA) -- Minister of Economy and Labor Besar Durmishi said the Hungarian loan of EUR 500 million would help develop the country's economy. He was speaking at a press conference held to mark the government's first 100 days in power.

Durmishi said over 80 municipalities had applied to the Ministry of Local Self-Government's call for projects that would be financed with 100 EUR million from the Hungarian loan. They had submitted over 350 projects, he said.

"The next step will be to support domestic companies through a grant program totalling EUR 250 million," he said. "This is why I think this loan will lead to developing our economy."

"If there isn't economic development, we will again have the same things happening to us as in the past 20 years," he said in response to a reporter's question about the loan.

Finance Minister Gordana Dimitrieska-Kochoska will sign Tuesday the EUR 500 million loan agreement in Budapest. 

The loan interest rate is 3.25 percent. The loan has a three-year grace period and a repayment period of 12 years.

The Hungarian loan was negotiated by Prime Minister Hristijan Mickoski and Hungary’s Prime Minister Viktor Orbán during the NATO Summit in Washington.

The law on the loan, to be taken from the Hungarian Export-Import Bank, passed in Parliament on Sept. 17. The law foresees the country paying EUR 70,000 in legal costs. mr/