Skopje, 28 April 2022 

Dealing with current challenges should not put structural reforms on hold. On the contrary, they should proceed concurrently, as they tend to yield long-term results. This was the message of the joint press conference of Governor Anita Angelovska Bezoska and the EIB Vice-President Lilyana Pavlova at the beginning of the National Bank’s 8th International Research Conference on Building Resilience in Times of Crisis: The Role of Policies.

The National Bank Governor pointed out that after a decade of low inflation, now almost all economies are reporting higher inflation rates. About half of emerging economies have recorded inflation higher than 7%, or the highest in two decades, while recent data show that price pressures may last longer than expected. International financial institutions are lifting inflation forecasts, while lowering annual growth expectations. However, with the latest forecasts, a positive economic result is expected, both globally and in the domestic economy.

 “Now central banks have to remain focused on their mandate of medium-term price stability, which requires gradual normalization of monetary policy. Short-term effects of the crisis have to be addressed by using fiscal policy tools, which need to be well-targeted and time-bound. There are many forces that tend to influence total factor productivity - the competitiveness of the economy, the quality of human capital, the quality of institutions, innovation and technological readiness. Structural reforms are needed and I will emphasize - tackling the current challenges should not put structural reforms on hold, on the contrary, they should proceed concurrently as they tend to yield long-term results”, said Governor Angelovska Bezhoska. 

The governor noted that central banks could provide support in some of these segments, such as regulatory facilitations for greater digitalisation of financial services and financial innovation, increase in productivity, and tackling challenges of climate change that affect growth capacity, price movement and financial stability. As she pointed out, they are high on the agenda of our central bank, i.e. they are set as strategic objectives, with multiple deliverables in sight.

The EIB Vice President Pavlova pointed out that as an institution EIB is ready to support the Western Balkan countries in overcoming the challenges posed by the current situation.

Just as the pandemic created an urgency for digitalization, the current crisis is spurring on the green transition towards energy efficiency, production via renewables, green management practices and climate-friendly innovation. As an EU climate bank, the EIB is willing to support projects in these fields across the Western Balkans. Besides financing the construction of more secure and diverse energy networks, we are helping the region to increase its resilience to climate change and develop new sustainable projects under the Economic and Investment Plan for Western Balkans. Last year, the EIB unlocked Euro 257 million to support decarbonisation and transition to green economy in the region”, said Pavlova.

Pavlova also pointed out that sustainable agriculture, especially food production, should also be high on the agenda, noting that the EIB has considerable experience in this area.

 “This is particularly important taking into account the impacts of the war in Ukraine which will likely affect global agricultural market. Therefore, we stand ready to support projects that will help countries increasingly dependent on food imports to boost their domestic production and improve the overall supply”, said Pavlova.

The international conference, organized at the time when the National Bank celebrates 30 years of monetary independence, hosts over 40 participants - governors and board members of central banks, senior officials of international financial institutions and representatives of the academic community from our country and abroad. They will discuss the key challenges for the region's economies in the new post-pandemic normal - with a view to post-pandemic policy adjustments as well as the effects of the growing uncertainty caused by the escalation of geopolitical risks in Eastern Europe, but also to more significant "structural challenges” such as climate transition, economic resilience and financial inclusion.