The National Bank Council has held an extraordinary meeting, adopting several decisions within its powers aimed to mitigate any adverse effects on the economy caused by the outbreak of the new viral infection.
In particular, the Council adopted the following decisions:
- Decision amending the Decision on the reserve requirement
With this amendment, the National Bank reintroduces the non-standard reserve requirement measure which allows reducing the base for banks' denar reserve requirement for the amount of newly approved and restructured loans to companies which according to the information of the Government of the Republic of North Macedonia will be most affected by the spread of COVID-19. The measure is expected to facilitate loan support on favorable terms by banks for the most affected sectors.
- Decision amending the Decision on the methodology for risk management
This decision extends the deadline for banks to submit their first nternal Liquidity Assessment Report which will have to be met by 30 September 30 2020, instead of 31 May. With this regulatory easing, banks and their teams are given room to focus on providing credit support to the corporate sector and the households and maintaining the quality of loan portfolio.
- Decision amending the Decision on the single tariff for charging fees for services rendered by the National Bank
A decision was made to abolish fees charged so far for withdrawing and returning cash to the central vault of the National Bank. This is to eliminate all costs for withdrawing and returning cash. Such changes are intended to support the cash management process in a way that minimizes any risk of transmitting the infection through this channel.
Earlier, in the Monday meeting, the National Bank's Operational Monetary Policy Committee decided to cut the policy rate to 1.75% aimed to lower the cost of bank lending.
The National Bank will continue to monitor closely the development of events and any surrounding risks, and their effects on the domestic economy, with a view to appropriate policy adjustments and adequate and timely response.
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