CEB to increase number of projects in Macedonia

Skopje, 13 June 2011 (MIA) - The support provided by the Council of Europe Development Bank (CEB) to Macedonia exceeds EUR 110 million, which is currently allocated through four projects in the sectors of education and healthcare, as well as construction of social apartments and reconstruction of penitentiary institutions.

CEB Governor Raphael Alomar said the bank assessed that Macedonia is an excellent partner for cooperation, and told Vice Premier and Finance Minister Zoran Stavreski at Monday's meeting that the number of projects in the country would increase.

"CEB has supported Macedonia for more than a decade, mainly in the social dimension of economic development. We have long-term cooperation with the bank, which currently exceeds EUR 110 million. This represents a large portfolio and huge support given to the Republic of Macedonia", said Stavreski after the meeting.

According to Governor Alomar, Macedonia's cooperation with CEB has been excellent since the country's accession in 1997, adding that such practice would resume.

"We have approved projects to the country amounting to EUR 200 million thus far, but we are prepared to increase the number of projects, taking into account their implementation goes in line with our social target", stressed Alomar.

The bank provides loans to Macedonia at an annual interest rate of 1.7 percent and a three-year grace period.

"When you take loans from CEB, you get the best possible terms. The interest rate is a technical issue that is difficult to answer since it is constantly changing", added Alomar.

The healthcare project encompasses the reconstruction of over 20 public institutions in the first stage, whereas the second would include 45 public health institutions, exceeding EUR 100 million. Moreover, the social housing project is worth EUR 25 million.

CEB also takes part in the reconstruction of penitentiary institutions, a project worth EUR 50 million, as well as the construction of school and sports halls, primarily in secondary schools, but negotiations are ongoing for similar project worth at least EUR 30 million for halls in elementary schools.

With regards to a budget review, FinMin Stavreski said there is no need or legal circumstances for this.

"The budget is fuller than expected. If there is a review, we would have to reallocate the revenue surplus. There are no legal conditions for this at the moment, new government and parliament compositions are required", Stavreski told journalists.

According to him, there is a possibility for early payout of the IMF loan, but all options would be reviewed after the composition of a new government.

Ahead of Tuesday's meeting with IMF officials, Stavreski voiced satisfaction that the mission paid a visit to Macedonia immediately after the elections.

"I am glad the IMF Mission is here to verify the sound policies, since Macedonia remained on its feet even in a time of elections, along with the macroeconomic stability and budget discipline", underlined Stavreski.