One of the key characteristics of our economy is the maintenance of low and stable inflation for a longer period, whereby, on average, the inflation in recent years is around 1%. The performances last year and in the first two months of this year are almost entirely in accordance with the forecasts of the National Bank. Similar to the expectations for the price movements in the EU - the inflation in the Macedonian economy remains moderate. The latest data and expectations also confirm the maintenance of price stability. 

This was emphasized by the Governor of the National Bank, Anita Angelovska Bezhoska, in the show “Economic Magazine” on the Alsat-M television. 

Referring to the price movements, the Governor emphasized that globally, in this period, the prices of primary products are variable and in both upward and downward direction and that for the time being, although the data and analyses indicate upward movements, it is not at some high level. 

“For us, having in mind that the EU is the most important trading partner of our economy, it is especially important what will happen to the price movements in the EU, where for the time being no significant changes are expected, due to which the ECB continues with the relaxed monetary policy. The upward movement of the forecasts of the ECB is moderate and the reasons are mainly located in energy prices and other factors that are currently considered to have a temporary character.” - Angelovska Bezhoska said.

The Governor emphasized that it is extremely important that the central banks of the large economies, for the time being, for the coming period plan to continue with the relaxed monetary policy, because it is a factor that affects the developments on the international financial markets, which also affect the prices of lending in our economy. 

“The developments on the international financial markets are very important to us. The more relaxed they are, the more space there is for us to conduct a looser monetary policy. It is the first prerequisite, and what the interest rates will be in our country also depends on the foreign exchange potential of our economy, which is currently at a completely appropriate level according to all the latest available data and of course on inflation, which depends on both external and domestic factors, primarily on domestic demand.” - Angelovska Bezhoska said.

Regarding the current trends in the credit support for the households, the Governor pointed out that the growth in housing loans of around 13% is the most significant, while consumer loans decelerated to around 6-7%, thereby observing a change in the structure of lending.

As emphasized by Angelovska Bezhoska, after the adoption of the new Law on Payment Services and Payment Systems, on which teams of the National Bank and the Ministry of Finance worked, the encouraging of the competition in the payment area with the entry of smaller payment institutions that will offer new services to the citizens at a lower price, is expected to reduce the payment services commissions.   

Among other things, in her interview, the Governor stressed that the data suggest that the regulatory easing that enabled a delay in the loan repayment under temporarily changed conditions made a positive contribution for the banks to the current crisis management. As a result of this measure, around 44% of the total regular credit portfolio in our country is composed of loans with eased repayment conditions, which is more than in the EU.  

“At the moment, as a central bank, we make detailed analyses in order to see the effectiveness of the measure and the segments to which one should pay special attention. Taking into account the analyses, we will also have discussions with the Macedonian Banking Association (MBA) to decide on possible further steps. However, it is important to bear in mind that if there are no regulatory changes, that does not mean that the citizens cannot address the banks in order to obtain prolongation of the repayment of their loans, depending on their financial status. When we talk about regulatory changes, we think of changes that would stimulate banks to do that.” - the Governor said, mentioning that in this segment, the rules for provisions from before the crisis apply to banks.

In her interview, she pointed out that the data show that there are structural improvements in the trade deficit, and that the reduction last year is due to the fact that the reduction in exports was smaller than the reduction in imports. Moreover, she underlined that this is not a surprise and that there was a reduction in the trade deficit in other crisis episodes as well. 

Responding to a question of the public debt, Angelovska Bezhoska emphasized that the growing public debt is a global phenomenon and the result of the fiscal packages for support of the economies, but this further stresses the need for further prudent and appropriate use of public resources. 

“The fiscal packages should be aimed at the most vulnerable categories and at expenditures that do not affect only in the short term, but which increase the potential for growth of the economy in the long term, which would also mean higher budget revenues. This in the medium run will help for fiscal consolidation. Also, for fiscal consolidation it is important to implement further structural reforms, on which the interest rate of the debt also depends, since the international investors’ perceptions also depend on them.” - the Governor said.