Skopje, 5 September 2020
The latest report of the Standard & Poor's agency emphasizes that the monetary policy setup and measures of the National Bank contribute to neutralize the effects of the COVID-19 pandemic on the Macedonian economy, and that the banking system remains stable.
In the latest report of the Standard and Poor's agency, which confirms the credit rating of our country, "BB-", with a stable outlook, a special emphasis is placed on the monetary policy and measures of the National Bank during the COVID crisis, the denar exchange rate and the situation in the banking system.
Standard & Poor's notes that the monetary policy setup and measures of the National Bank contribute to neutralize the effects of the COVID-19 pandemic on the Macedonian economy, distinguishing the reduction of the key interest rate to the historically lowest level, the regulatory space for delaying the collection of credit liabilities and the measures for providing additional liquidity in the banking system.
"The banking system remains stable," said Standard & Poor's. Referring to the revocation of founding and operating license of "Eurostandard Bank", the agency notes that it is not related to the COVID crisis. According to the estimates of Standard & Poor's, having in mind that the share of this bank in the total loans and total deposits of the banking system was small, i.e. below 2%, the revocation of the operating license of "Eurostandard Bank" will not affect stability of the banking system at all.
Regarding the exchange rate of the denar against the euro, it points out that according to their assessments, it will remain stable. They emphasize that the absence of short-term capital flows significantly reduces the risks to the Macedonian economy. At the same time, among other things, the report states that the level of foreign reserves is adequate and that in July this year it is 10% higher compared to the end of last year, which is important for the stability of the domestic currency.
In the report, the agency notes that the current developments in the deposit and foreign exchange market confirm the confidence of the citizens in the banking system and the stability of the domestic currency - the denar.
Standard & Poor's points out that the decision of the European Central Bank to enable the National Bank an access to additional foreign currency liquidity in euros through a repo line, in the amount of up to EUR 400 million, if necessary, is particularly significant. At the same time, it notes that the National Bank has not used these funds so far, but these funds are at its disposal if needed.
According to the estimates of the agency, despite the impact of the COVID crisis, the Macedonian economy has the capacity and space to adequately overcome the period of uncertainty resulting from the global crisis. The Standard & Poor's report also emphasizes that the negotiations within the European integration process can contribute towards strengthening of the capacity of the Macedonian economy in the implementation of structural reforms.