New 650 million euro loan triggers reactions and protests in Skopje

Written by on July 12, 2016 in Europe - Comments Off on New 650 million euro loan triggers reactions and protests in Skopje
500_Euro_Banknoten photo  Frank Schwichtenberg

The decision of the government in the Republic of Macedonia to borrow 650 million euro by selling euro bonds has sparked reactions and protests in Skopje.

Last week, the government announced that it would launch procedures to secure 650 million euro in the international market, in order to cover this year’s and next year’s budget deficit and also other debts. The maturity of the euro bonds is 10 years and the interests are high. At the end of the maturity period, the state would have paid a billion euro back.

Governor of the Central Bank, Dimitar Bogov said that the decision to sell euro bonds has been taken by the government, while according to him, the Central Bank is an independent institution and has no powers in the government’s borrowing.

Meanwhile, the largest opposition party, SDSM said that this loan is being attempted to be taken illegally by damaging the citizens’ interests.

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(Photo: Frank Schwichtenberg)

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