Skopje, 20 December 2024 (MIA) - Minister of Finance Gordana Dimitrieska-Kochoska signed Friday a loan agreement with the Hungarian Export-Import Bank for an additional EUR 500 million which, according to the Ministry, will be used to fully repay the 2018 Eurobond set to mature in January 2025.

“The loan, according to the agreement, has been approved with a repayment period of 15 years and an included grace period of 3 years and an interest rate of 3.25 percent, which is a much lower interest rate than what we would have had, had we issued a new Eurobond for which the interest rate is over 6 percent. Additionally, we are also saving money with the expenses on provisions, which for this loan stand at around EUR 50.000, as opposed to the expenses for issuing a Eurobond which can be higher than EUR 1 million,” the Finance Minister said.

Dimitrieska-Kochoska noted the importance of the loan being offered at the same conditions as the first EUR 500 million loan, for which an agreement was signed in October, and thanked the Hungarian Government for the support.

“The funds will be made available to the country at the beginning of January in order to ensure a timely repayment of the Eurobond. Consequently, an important aspect to note is that the withdrawing of these funds won’t impact the level of public debt since they are the same amount for which the Eurobond was issued,” Dimitrieska-Kochoska said.

In October, the Minister signed an agreement with the Hungarian Export-Import Bank for a separate loan of EUR 500 million set to fund investments by municipalities and businesses.

Photo: Ministry of Finance