IMF offers Macedonia open credit line

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  • Prolet
    Senior Member
    • Sep 2009
    • 5241

    IMF offers Macedonia open credit line

    Hopefully now our Government can use these funds towards the Gas Pipeline aswell as the Corridor 8 and 10 Projects. This is extremly important for Macedonia.

    Saturday, 09 October 2010

    An open credit line is a new instrument of the International Monetary Fund (IMF), aimed at assisting countries with healthy economic policy to cope with the crisis, said head of IMF Mission to Macedonia Wes McGrew after talks with the country's delegation led by Vice Premier and Finance Minister Zoran Stavreski at the sidelines of the annual World Bank/IMF assembly, media reports from Washington.

    "The credit is intended for dealing with circumstances caused by unexpected difficulties, providing security in case the country needs a larger loan, in this case US$ 400 million, thus supporting the country's economic policy", said McGrew.

    According to Vice Premier Stavreski, the new instrument is one of security, with Macedonia having the option of using the funds, but not necessarily.

    He stressed such funds are allocated to states that the IMF trusts due to healthy economic policies.

    "We are satisfied that Macedonia is the first country the Fund is discussing with about the new instrument", added Stavreski.

    The IMF offer will be reviewed by the Government, along with the experts and businessmen, and if approved, funds would be used for capital investments, budget support, as well as repayment of debts.

    Vice Premier Stavreski also held meetings with IMF Executive Director Age Bakker and Council of Europe Development Bank (CEB) Governor Raphaël Alomar.

    The agenda of the Macedonian delegation, also comprised of Vice Premier for Economic Affairs Vladimir Pesevski and Deputy-Economy Minister Metodij Hadzi-Vaskov, includes meetings with World Bank Vice President Philippe Le Houérou, WB Macedonia director Jane Armitage, as well as IMF and WB high officials, Naoyuki Shinohara and Ruud Treffers respectively.


    МАКЕДОНЕЦ си кога кавал ќе ти ја распара душата,зурла ќе ти го раскине срцето,кога секое влакно од кожата ќе ти се наежи кога ќе видиш шеснаесеткрако сонце,кога до коска ќе те заболи кога ќе слушнеш ПЈРМ,кога немаш ни за леб,а полн си во душата затоа што ја сакаш МАКЕДОНИЈА. МАКЕДОНИЈА во срце те носиме.
  • Phoenix
    Senior Member
    • Dec 2008
    • 4671

    #2
    ...many countries try to avoid IMF intervention or 'help' at all costs...

    Involvement with the IMF comes at a high political cost...

    Comment

    • Prolet
      Senior Member
      • Sep 2009
      • 5241

      #3
      Phoenix, 1.2% interest rate seems like a good deal for us, we cant advance our economy if we dont compete in the energy sector aswell as complete the roads and railroads for logystics and transport. Only until recently we imported 70% of our energy, now we must concentrate on alternate energy sources we still havnt got a gas pipeline and we need to expand further in these fields.

      Keep in mind that we will be spending 200 million euros on the Corridor 8 project alone and thats subsidizing it for a foreign company to come in and help build the roads and rail roads from our border with Bulgaria all the way to Albania. They said that the Gas pipeline is going to cost 300 million euros alone all up we are looking at over a billion euros which is going to take alot out of us financially.
      МАКЕДОНЕЦ си кога кавал ќе ти ја распара душата,зурла ќе ти го раскине срцето,кога секое влакно од кожата ќе ти се наежи кога ќе видиш шеснаесеткрако сонце,кога до коска ќе те заболи кога ќе слушнеш ПЈРМ,кога немаш ни за леб,а полн си во душата затоа што ја сакаш МАКЕДОНИЈА. МАКЕДОНИЈА во срце те носиме.

      Comment

      • julie
        Senior Member
        • May 2009
        • 3869

        #4
        I agree with Phoenix, at what cost to Macedonia politically is this being offered?
        "The moral revolution - the revolution of the mind, heart and soul of an enslaved people, is our greatest task."__________________Gotse Delchev

        Comment

        • Prolet
          Senior Member
          • Sep 2009
          • 5241

          #5
          Julie, How would you buy a house if no bank is prepared to give you a loan? $400 million US is not that much at all when you look at it, we have major projects that need to be completed in order to boost our economy. This money that the IMF is pepared to loan are available funds, its not like we are getting Billions.

          Now that we are slowly going out of the global recession, we need to improve our economy through foreign investment and that cant happen if our roads are no good and if we are struggling with energy sources especially if they are going to build all those factories in Bunardzik.
          МАКЕДОНЕЦ си кога кавал ќе ти ја распара душата,зурла ќе ти го раскине срцето,кога секое влакно од кожата ќе ти се наежи кога ќе видиш шеснаесеткрако сонце,кога до коска ќе те заболи кога ќе слушнеш ПЈРМ,кога немаш ни за леб,а полн си во душата затоа што ја сакаш МАКЕДОНИЈА. МАКЕДОНИЈА во срце те носиме.

          Comment

          • Phoenix
            Senior Member
            • Dec 2008
            • 4671

            #6
            Originally posted by Prolet View Post
            Julie, How would you buy a house if no bank is prepared to give you a loan? $400 million US is not that much at all when you look at it, we have major projects that need to be completed in order to boost our economy. This money that the IMF is pepared to loan are available funds, its not like we are getting Billions.

            Now that we are slowly going out of the global recession, we need to improve our economy through foreign investment and that cant happen if our roads are no good and if we are struggling with energy sources especially if they are going to build all those factories in Bunardzik.
            Prolet, its not the same as taking a loan for a house.

            One disturbing criticism of the IMF is that once a loan is approved you're at the mercy of economists in Washington as to how and under what terms that money is repayed, once Washington starts pulling the strings, the Government (Macedonian) loses control...

            The IMF is usually used as a last resort by most countries seeking loans...

            Comment

            • Prolet
              Senior Member
              • Sep 2009
              • 5241

              #7
              Phoenix, I think its good we have these available funds, when you look at it 400 million is not that much at all unless we are billions in debt look at Croatia they are 45 billion euros in debt i think we've done quite well.

              I dont think we should fall behind on the loans but at the same time we need to look at our future aswell. Those EU banks for development and reconstruction offer credit loans of 0.25% i guess we could use those aswell, either way we need to boost our economy and we cant afford to stand still while others are moving forward we have to be competitive and we cant be competitive if we dont have the proper facilities.
              МАКЕДОНЕЦ си кога кавал ќе ти ја распара душата,зурла ќе ти го раскине срцето,кога секое влакно од кожата ќе ти се наежи кога ќе видиш шеснаесеткрако сонце,кога до коска ќе те заболи кога ќе слушнеш ПЈРМ,кога немаш ни за леб,а полн си во душата затоа што ја сакаш МАКЕДОНИЈА. МАКЕДОНИЈА во срце те носиме.

              Comment

              • Rogi
                Senior Member
                • Sep 2008
                • 2343

                #8
                I think this credit line is useful only in announcing or promoting its' availability for the purpose of ensuring potential investors in Macedonia about the sound economic policies that the IMF has now publicly agreed with.

                However, in terms of actual use of the funds available, I think any financial interaction with the IMF is fraught with danger, particularly in a country like Macedonia where so much goes unregulated and corruption is rife, which is what it seems the IMF finds generally appealing. They don't seem to be able to pass up on the ability to send money to a State, where much of it goes untracked, corrupting various individuals at various levels in Government, to ensure certain policy changes that are more favorable to some corporations and Governments, whilst the country is left with mounting debts.

                All Macedonia will end up with are vast loans with those funds never being spent on any infrastructural improvements, damaging reforms (on the advice of the IMF, as part of its' loan terms) that would seemingly require more loans with far less favorable terms, digging Macedonia into a deeper hole, ultimately pillaging the State until it begs for mercy by capitulating on whatever terms the IMF and its' Board will set.

                Consider Brazil, Argentina, Mexico, even Russia (and Putin wanting very little to do with the IMF) as well as the Africans who refer to the IMF as the "Infant Mortality Fund" because of the disastrous effect to the mortalify fund caused by the reforms (and the cuts in healthcare) in a number of African countries, that were part of the IMF loan terms. Despite the Billions these countries received, their people remain mostly poor, barely any infrastructural improvements were made, practically nothing was really achieved by the IMF loans (except for mountains of debt and disastrous, even deadly reforms) and none of their economies can really be considered 'free'.

                The only country that you could perhaps suggest has actually improved, and has an economy that can be considered 'free', is South Korea, though I'm sure you could connect the geo-political interests that were in play.
                Last edited by Rogi; 10-10-2010, 06:21 AM.

                Comment

                • Prolet
                  Senior Member
                  • Sep 2009
                  • 5241

                  #9
                  Rogi, Nikola Gruevski payed back most of the loans that were owed to IMF, there is no doubt that we have to be cautious but at the same time we need strict guidelines should we take some of these available funds in order for them to be invested strictly into projects intended not into peoples pockets like what happened with the Tajvanskite Krediti.

                  Keep in mind that we owe less then 2 billion in foreign debt, much less than any other country around us. Kosovo owes over 10 billion for starters i think we've done very well to manage the books so far.
                  МАКЕДОНЕЦ си кога кавал ќе ти ја распара душата,зурла ќе ти го раскине срцето,кога секое влакно од кожата ќе ти се наежи кога ќе видиш шеснаесеткрако сонце,кога до коска ќе те заболи кога ќе слушнеш ПЈРМ,кога немаш ни за леб,а полн си во душата затоа што ја сакаш МАКЕДОНИЈА. МАКЕДОНИЈА во срце те носиме.

                  Comment

                  • Prolet
                    Senior Member
                    • Sep 2009
                    • 5241

                    #10
                    The World Bank has given us a 150 million euro credit line.

                    Канал 5 телевизија како една од водечките телевизиски куќи во Македонија, од 1998 година на малите екрани до гледање онлајн денес, известува за најновите вести од Македонија, регионот и светот.
                    МАКЕДОНЕЦ си кога кавал ќе ти ја распара душата,зурла ќе ти го раскине срцето,кога секое влакно од кожата ќе ти се наежи кога ќе видиш шеснаесеткрако сонце,кога до коска ќе те заболи кога ќе слушнеш ПЈРМ,кога немаш ни за леб,а полн си во душата затоа што ја сакаш МАКЕДОНИЈА. МАКЕДОНИЈА во срце те носиме.

                    Comment

                    • fyrOM
                      Banned
                      • Feb 2010
                      • 2180

                      #11
                      Prolet you wouldn’t be in politics or someone wanting to be in politics or better still a used car salesman.

                      Prolet…Phoenix, 1.2% interest rate seems like a good deal for us,

                      Those EU banks for development and reconstruction offer credit loans of 0.25% i guess we could use those aswell, either way we need to boost our economy

                      isn’t 0.25 percent better than 1.2 percent especially over a billion euros.

                      This money that the IMF is prepared to loan are available funds, its not like we are getting Billions.

                      all up we are looking at over a billion euros which is going to take alot out of us financially.


                      Its an additional billion euros. I cannot imagine RoM has no other debt and this will be there only exposure and any debt needs to be managed well especially by countries with small economies like RoM .

                      Rogi…However, in terms of actual use of the funds available, I think any financial interaction with the IMF is fraught with danger, particularly in a country like Macedonia where so much goes unregulated and corruption is rife, which is what it seems the IMF finds generally appealing.

                      Rogi is right to be suspicious. Internationally courtiers which have gone to the IMF have come out worse than going to them also as said above the banks are offering 0.25 percent ad so are cheaper than the IMF. That being said Rogi is right again in saying

                      I think this credit line is useful only in announcing or promoting its' availability for the purpose of ensuring potential investors in Macedonia about the sound economic policies that the IMF has now publicly agreed with.

                      Comment

                      • Prolet
                        Senior Member
                        • Sep 2009
                        • 5241

                        #12
                        OziMak, We got loans out with a much bigger interest rate so they actually want to use the IMF loan to pay off the other loans because of the much lower interest rate.

                        I dont think those EU banks will give us more then 30-40 million euros on reconstruction and redevelopment. Think about it, if that was the case then everybody would take out these loans.
                        МАКЕДОНЕЦ си кога кавал ќе ти ја распара душата,зурла ќе ти го раскине срцето,кога секое влакно од кожата ќе ти се наежи кога ќе видиш шеснаесеткрако сонце,кога до коска ќе те заболи кога ќе слушнеш ПЈРМ,кога немаш ни за леб,а полн си во душата затоа што ја сакаш МАКЕДОНИЈА. МАКЕДОНИЈА во срце те носиме.

                        Comment

                        • Risto the Great
                          Senior Member
                          • Sep 2008
                          • 15660

                          #13
                          The USA effectively controls the IMF, they are offering cheap money to mortgage Macedonia before the EU gets a shot at it. Dangerous times ahead.
                          Risto the Great
                          MACEDONIA:ANHEDONIA
                          "Holding my breath for the revolution."

                          Hey, I wrote a bestseller. Check it out: www.ren-shen.com

                          Comment

                          • Prolet
                            Senior Member
                            • Sep 2009
                            • 5241

                            #14
                            Risto, I guess there is always a wory however we are talking about major investments that will bring in alot of capital to our country. We cant expect to be competitive and bring in foreign investments when we dont have the facilities to offer them in order to build their factories and power plants.

                            Lets not forget that over 40 hospitals and health clinics are to be fully renovated and rebuilt, all the regional roads, all the villages are getting roads, new vodovodi are being rebuilt especially in the Sopishte region 13 villages are without water.

                            The latest news thats coming from Zoran Stavrevski is that 600 million are being approved by the World Bank and IMF, its up to the government to figure out how much of the funds made available they will use.
                            МАКЕДОНЕЦ си кога кавал ќе ти ја распара душата,зурла ќе ти го раскине срцето,кога секое влакно од кожата ќе ти се наежи кога ќе видиш шеснаесеткрако сонце,кога до коска ќе те заболи кога ќе слушнеш ПЈРМ,кога немаш ни за леб,а полн си во душата затоа што ја сакаш МАКЕДОНИЈА. МАКЕДОНИЈА во срце те носиме.

                            Comment

                            • fyrOM
                              Banned
                              • Feb 2010
                              • 2180

                              #15
                              Prolet I know the government is doing good as you say in post 013 but the IMF is the boog a booh man of failing countries and their past leaves much to be desired. Da mozis da go iskoristis gdavolot bez toj tebe da te izkoristi ne e lesno prasine.

                              Comment

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