Skopje, 31 October 2023 (MIA) - The public debt dropped by 2.1 percent in the third quarter of 2023, compared to the previous quarter, and by 3.9 percent compared to the end of 2022. It now stands at 55.8 percent of the GDP, returning to the pre-2020 levels, the Ministry of Finance said on Tuesday.

"Maintenance of the public debt at a stable level and within the limits of the Maastricht Criteria and the new fiscal rules of the Law on Budgets remains our fundamental commitment in the public debt management. The best indicator of this is the data released by the Ministry of Finance, which shows a drop of the public debt from 59.7 percent in 2020 to 55.8 percent by the end of Q3," says Finance Minister Fatmir Besimi.

He adds this is especially important because it is realized amid an increasing need for greater fiscal support for management of the covid-crisis, followed by the energy and price shocks, which required the allocation of EUR 2 billion, while servicing liabilities, including prior ones, in parallel. Among other things, Eurobonds worth EUR 1.22 billion were paid off during this period.

In Q3, the EUR 450 million Eurobond issued in 2016 was paid off, whereas liabilities by way of external debt in the amount of about EUR 540 million were settled.

The government debt has also dropped by 2.2 percent compared to Q2 and now stands at 48.2 percent of the GDP.

The Government and the Ministry remain committed to prudent public debt management and its maintenance at a stable level. This requires continued implementation of the plan for gradual fiscal consolidation and allocation of Budget funds solely for development projects and repayment of old debts at the lowest possible cost, reads the press release.

Photo: MIA