millions of euros
millions of euros
Planned limit for net borrowing on the domestic market of government securities in 2021
"Implementation of net borrowing on the domestic market of government securities in 2021"
% of the planned limit
Data as of 31.12.2021
Government debt is the sum of financial liabilities created by borrowings of the central government and municipalities in the form of loans and securities.
Public debt is the largest debt portfolio in the country and it is the sum of financial liabilities created by borrowing of the central government, municipalities and the debt of public enterprises and companies in dominant ownership of the state or municipalities.
The debt of the municipalities, presented on this website, contains the financial liabilities arising from the direct borrowing of the municipalities in the form of loans and/or securities.
The difference between public debt and government debt is the debt of public enterprises and companies founded by the dominant ownership of the state or municipalities.
The debt of the public enterprises and companies in dominant ownership of the state or municipalities, presented on this website, includes the public enterprises and companies founded by the state or municipalities and which are wholly or dominantly owned by the state or municipalities.
Net borrowing is the difference between the borrowing and repayment over a given period. The net borrowing indicates the change (increase or decrease) of government debt over a given period. For example, if in January 2020 the government borrowed 20,000,000 denars, and at the same time, it repaid a debt of 15,000,000 denars, the net borrowing made in January 2020 was 5,000,000 denars. This means that the government debt in January 2020 increased by 5,000,000 denars.
Government securities (GSs) are securities issued by the Ministry of Finance on behalf of the Government of the Republic of North Macedonia. Government securities are sold through auctions. Only authorized direct participants (all banks in the Republic of Macedonia) may participate in the auctions, and other interested residents and non-residents (natural persons or legal entities) may participate indirectly, i.e. through the banks.
Eurobond is a security issued by the Republic of North Macedonia on the international capital market.
On-lending is a procedure where the Government of the Republic of North Macedonia borrows from a domestic or foreign lender and then lends those funds to municipalities, public enterprises or companies with a dominant ownership by the state or municipalities. This debt is recorded in the central government debt.
A Government guarantee is a potential payment obligation assumed by the Republic of North Macedonia on behalf of the holder of public debt on the account of whom a guarantee has been issued. The holder of debt in this case may be the municipalities, public enterprises and companies with dominant ownership of the state or municipalities.
The public debt is created by the holders of public debt, such as: Government of the Republic of North Macedonia, public institutions established by the state, municipalities, public enterprises and companies in dominant ownership of the state and municipalities.
Debt repayment means all payments made on the basis of interest and principal accrued on a previously created debt. Principal is the part of fixed debt that is paid over a given period. Interest is the expense payable on the debt.
Refinancing is borrowing in order to provide funds for repayment of existing debt.
Reprograming is changing the terms and/or structure of an existing debt without creating a new debt.
Answer: The increase or decrease of the debt statement depends on the new borrowings in a certain period, but also on all repayments of old debts made in that period. Very often there is an incomplete interpretation of borrowing of government securities in the public. Namely, in each new auction of government securities the public should be aware of the amount of newly issued securities (borrowing), but it should also know what is the amount of securities to be repaid in that period (paying off debt). Thus, the difference between the new borrowing and the repayments made in a given period shows the net change in the debt statement.
Example: If the government borrows 10,000,000 denars at one auction, and at the same time repays securities in the amount of 10,000,000 denars issued in the previous period, there is no change in the debt statement.
Answer: No. Any borrowing is recorded at the debt statement at the time the loan is disbursed. However, if certain loans are disbursed (implemented) in tranches, only the disbursed tranches will be recorded in the debt statement.
Example: If a loan of EUR 10,000,000 is signed in 2020, which is to be disbursed in two annual tranches (EUR 5,000,000 in 2020 and 2021), the debt statement of this loan in 2020 will be 5,000. 000 euros.
GSs – Government Securities
GDP – Gross Domestic Product
CG – Central Government
FS – Fiscal Strategy
RNM – Republic of North Macedonia
PE – Public enterprise
TC – Trade Company
PESR – Public Enterprise for State Roads
ESM – Power Plants of Macedonia
MEPSO – Electricity Transmission System Operator of the Republic of North Macedonia
DBNM – Development Bank of North Macedonia
JSP – Public Transport Enterprise - Skopje
NER – joint stock company for performing energy activities – National Energy Resources Skopje
M-NAV - state-owned joint stock company- Macedonian Air Navigation Service Provider