Skopje, 29 September 2023 (MIA) – The Ministry of Finance issued Friday the first structural bonds for the municipalities of Zhelino, Tetovo and Vinica, which are set to provide funds enabling the municipalities to cover outstanding payments and strengthen their financial capacities. The issuing of the structural bonds is a part of the planned reform for the promotion of fiscal decentralization, and a part of the broader reform for public finance management, said the Ministry in a press release.

According to the Ministry, the 10-year bonds are set to enable the municipalities to consolidate their budgets and focus on their development. They will repay the bonds in 10-year equal installments. The bonds can also be traded on the secondary market of the stock exchange.

“This represents significant support for the municipalities, which is a part of the reform aimed at providing more funds to local authorities, through increased income for the municipalities from taxes collected by the central government, but, it’s also aimed at increasing accountability and transparency. All of this is in the direction of ensuring their financial stability and providing quality services, since they are in charge of areas such as education, social protection, environment, communal services etc.,” said Finance Minister Fatmir Besimi, who added that the entire reform is strengthening the local self-governments while also obliging them to greater fiscal discipline, accountability and transparent work.

The structural bonds for which the Finance Ministry published the prospectus on Friday amount to a total of Mden 275 million, of which Mden 250.2 million are for the Municipality of Tetovo, Mden 21.7 million for the Municipality of Zhelino, and Mden 2.5 million for the Municipality of Vinica.

Photo: MIA Archive