TOTAL PUBLIC DEBT

59,5%

of GDP

6.527,0

millions of euros

Data as of 31.03.2020

Government debt

50,7%

of GDP

5.561,0

millions of euros

Debt of public enterprises and companies in dominant ownership of the state or municipalities

8,8

of GDP

965,7

millions of euros

Central government debt

50,6%

of GDP

5.551,5

millions of euros

Debt of the municipalities

0,1%

of GDP

9,9

millions of euros

External debt of the central government
2.606,0
Loans
977,6
Eurobonds
1.628,3
Internal debt of the central government
1.962,6
Government securities
1.775,7
Structural bonds
54,4
Government local loans
132,5
millions of euros
External debt of the municipalities
2,2
Internal debt of the municipalities
9,3
millions of euros
Guaranteed debt of public enterprises

8,4%

of GDP

924,9

millions of euros

Non-guaranteed debt of public enterprises

0,4%

of GDP

40,8

millions of euros

Power Plants of North Macedonia
81,7
MEPSO
20,5
Development Bank of North Macedonia
123,4
Railways of RNM Transport
32,2
MZ Infrastructure
1,5
Public Enterprise for State Roads
681,0
JSP
2,0
millions of euros

Public debt trends

Public debt
as percentage of GDP

48,9%

Public debt
in millions of euros

5.540,9

Central government debt
in millions of euros

4.545,4

Planned borrowing for 2020

Central Government
Municipalities
Debt of public enterprises and companies in dominant ownership of the state or municipalities
BORROWING
Borrowing from foreign sources
592
Eurobonds
500
Credits from foreign financial institutions intended to finance certain projects
57
On-lending credits
35
REPAYMENT
Repayment of foreign borrowing
439
NET
153
Borrowing from domestic sources
447
Short-term loans from commercial banks
133
Issuance of structural bonds
7
Issuance of government securities*
307
Repayments of domestic borrowing
265
Short-term loan from commercial banks
133
Repayment of structural bonds
25
Repayment of government securities*
107
182
0
-18
200
*refers to government bonds in millions of euros
Projected debt of the central government at the end of 2019 in accordance with the revised FS2020-2022
Net change (borrowing - repayment)
Projected debt of the central government at the end of 2020 in accordance with the revised FS2020-2022
millions of euros
% of GDP
4.571
335
4.906
40,8%
BORROWING
Borrowing
1
REPAYMENT
Repayment
1
NET
0
Projected debt of the municipalities at the end of 2019 in accordance with the revised FS2020-2022
Net change (borrowing - repayment)
Projected debt of the municipalities at the end of 2020 in accordance with the revised FS2020-2022
millions of euros
% of GDP
12
0
12
0,1%
BORROWING
Borrowing
264
PESR
173
ESM
14
MEPSO
15
MZ
7
DBNM
35
JSP
5
NER
10
M-NAV
5
REPAYMENTS
Repayments
126
PESR
56
ESM
22
MEPSO
6
МZ
6
DBNM
35
JSP
0
NER
0
M-NAV
1
NET
137
Projected debt of PE and TC in dominant ownership of the state or municipality at the end of 2019 in accordance with the revised FS2020-2022
Net change (borrowing - repayment)
Projected debt of PE and TC in dominant ownership of the state or municipality at the end of 2019 in accordance with the revised FS2020-2022
millions of euros
% of GDP
1.011
137
1.148
9,5%

Government securities

Trends of borrowing through government securities on the domestic market
Government securities on the domestic market in 2020

Planned limit for net borrowing on the domestic market of government securities in 2020

200.000.000 €

"Implementation of net borrowing on the domestic market of government securities in 2020"

% of the planned limit

Data as of 03.07.2020

Borrowing and paying off debt on the bases of government securities in 2020
More information on this link
Flows of interest rates on government securities by maturity
1

month

3

month

6

month

12

month

2

year

3

year

5

year

10

year

15

year

30

year

The structural bonds are not classically marketable bonds issued for raising funds by the state, but they are issued for reimbursement of certain natural persons or legal entities on various grounds. At present, denationalization bonds and selective credit bonds appear as structural bonds in the public debt statement of RNM.

More information on issuance of structural bonds can be found here.
What is government debt?

Government debt is the sum of financial liabilities created by borrowings of the central government and municipalities in the form of loans and securities.

What is public debt?

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.

What does the debt of the municipalities, presented on this website, cover?

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.

What is the difference between public debt and government debt?

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.

What does the debt of the public enterprises, presented on this website, cover?

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.

What is net borrowing?

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.

What are government securities?

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.

What is Eurobond?

Eurobond is a security issued by the Republic of North Macedonia on the international capital market.

What is on-lending?

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.

What is a government guarantee?

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.

Who can create the public debt?

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.

What is debt repayment?

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.

What is refinancing?

Refinancing is borrowing in order to provide funds for repayment of existing debt.

What is reprograming?

Reprograming is changing the terms and/or structure of an existing debt without creating a new debt.

Does borrowing always increase the debt statement?

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.

Is the total amount of the loan immediately recorded in the debt statement at the conclusion of the loan agreement?

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

You can send questions to the following email javendolg@finance.gov.mk