Dodevska: Macedonia’s sky high indebting

On the occasion of this week’s new borrowing by the Government in the amount of 12.5 million euros, with which additional burden is thrown upon the citizens, putting them and their children in an even deeper debt slavery, CIVIL Media requested statements from two experienced journalists and editors, economic experts, who have been following this area of work for years, they are: Aneta Dodevska, author and host of TV show “Trend” on TV “24 News” and Goran Temenugov, editor of the economic section at TV “Alsat-M”.

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„From the beginning of the year, in just two weeks’ time, actually in just two auction days, the Government managed to cumulate and create a new debt in the amount of 23 million euros! Well now, this would not have been so surprising if we had not heard the statement of the Minister for Finance, who only two months ago when the Eurobond of 270 million euros was issued, stated that the money from that indebting would be enough to cover the budget financing and spending in the first semester of this year. With this rises the dilemma of why the Government in just two weeks’ time, as of January, has cumulated a debt of 23 million euros? Wasn’t the money from that Eurobond enough for the entire economic semester?

In general, the indebting of the country is becoming a problem, and in my opinion, in the short term as well. In analyzing the indebting, two things are important: first, the rate at which Macedonia is indebting itself, and secondly, the reason for its indebting.

An analysis of the figures that I just conducted shows that according to recent data, the total public debt, I am referring to the total public debt and not the general debt of Macedonia, is 3,9 billion euros. In 2007 this figure was only 1,5 billion euros, which means that in 9 years Macedonia has increased its total public debt for 2,4 billion euros.

This shows that the dynamics, the pace of borrowing is high, and on the other hand, there is the question  –what are we spending these loans on? We have had examples when finance ministers have said that we use the Eurobonds, which by default are an expensive borrowing, to finance, for example, increased salaries, increased pensions, salaries of the administration and current budget spendings, which in my opinion is economically illogical and unacceptable. Hence, I believe that the borrowings already pose a serious problem, despite the fact that the Government claims that Macedonia, according to the level of indebtedness, remains the 4-5 country with lowest debt in Europe. Here an answer should be given to the question – is our economy strong and powerful enough, in the short- and medium-term, to repay its obligations.

Let me remind you of one more thing in regard to this year’s budget, and that is the fact that just for the principal amount of the borrowing and the interest, we need to pay off a debt of almost 500 million euros!”


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