Skopje, 26 December 2023 

The confidence of our citizens in the denar was reflected through the latest data on deposits, which show that the savings in domestic currency increased by 11%, while the savings in foreign currency by 3%. The stability of the exchange rate of the denar, which is the pillar of the macroeconomic stability, is seen through all indicators, from which the foreign reserves are the most important, which are higher compared to the pre-pandemic period. By the end of the year, it is expected that they will exceed four billion euros, mainly thanks to the positive developments on the foreign exchange market and the purchase of foreign currency by the central bank, said the Governor of the National Bank, Anita Angelovska Bezhoska in an interview for TV24.

Discussing the monetary developments, the Governor pointed out that deposits kept on increasing. According to the latest available data, total household and corporate deposits registered an annual growth of 7.2%. The households’ confidence in the domestic currency and in the banking sector is seen through the positive trends of growth of denar savings and long-term deposits, which show yet another favorable structural change. "The growth rate of long-term savings is 27%, which is the highest growth in the last decade. It is good that the savings are growing, because in our country, the savings are the main source for the financing of the lending activity”, Angelovska Bezhoska said.

In terms of lending, the Governor informed that despite the shocks, the banking system continues to provide solid credit support. She pointed out that last year the credit growth was around 9%, whereby due to the energy shock and the energy imports, the growth was especially pronounced in the corporate sector, where it was over 11%. Lending increased this year as well, with a certain moderate slowdown and an annual rate of around 5%, as expected due to the change in the financial conditions, but also due to the reduction of the corporate sector needs, due to the reduction of the prices of energy. The Governor emphasized that in our country, however, there is still growth of lending, while in many of the European Union member states the lending activity registers negative rates.

Discussing the gap between lending and deposit interest rates, i.e. interest rates on loans and deposits, the Governor pointed out that it narrowed. "If we go back about a decade, that interest rate spread was higher and equaled 4.8 percentage points. The trend is downward and is currently around 3.8 percentage points. If we compare with the EU, it is true that the interest rate spread is higher, due to the higher competition. If, on the other hand, we compare with the region, with which we have similarities in the economies and financial system, the spread in our country is one of the lowest. It is good if this trend of narrowing of the gap is maintained, and the strengthening of the competition will be a key factor, but not only in the banking system, but also the competition from other non-bank financial institutions, such as there are in the European developed financial system”, the Governor Angelovska Bezhoska said.