Skopje, 26 February 2021
Today, the National Bank Council held a regular meeting and passed a Decision on temporary limitation of the distribution and payment of dividends to bank shareholders. This decision also applies to savings houses.
As pointed out in the meeting, the outbreak of the COVID-19 pandemic urged the National Bank to adopt monetary easing and regulatory flexibility measures, in support of the banking system and the overall economy in times of crisis. The latest indicators confirm that the banking system is successfully maintaining its stability, with continuous loan growth and stable banks' capital positions. However, the uncertainty of the corona crisis persists. Therefore, the Decision passed at today's session, as a temporary measure, acts preventively to further increase banking system resilience and maintain stability, amid uncertainty about the further course of the health crisis.
The Decision is temporary and will be valid until the end of this year. By 30 September, the National Bank will reassess the pandemic circumstances underlying the decision. Depending on the assessment, the National Bank may prematurely lift the restriction from this decision.
As emphasized in the meeting, just because of the ongoing uncertainty, banks are expected to continue carefully planning their capital needs while giving priority to the preservation and further strengthening of capital resources. This is extremely important for further preservation and strengthening of the banking system stability, as well as for providing further solid credit support for citizens and companies. The corona crisis also urged other countries in the region and beyond, to introduce such temporary restrictions on dividends.
The Council discussed and adopted the National Bank's Financial Statements and Annual Accounts for 2020 audited by an independent audit company. In the opinion of the independent auditor, the financial statements present fairly, in all material respects, the financial position of the National Bank as at 31 December 2020, and its financial performance and cash flows for the year that ended, in accordance with International Financial Reporting Standards.
The Council also discussed other issues within its mandate.
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