Skopje, 2 November 2021

Governor Angelovska Bezhoska, as a representative of the six Western Balkan countries in the Vienna Initiative Board, participated in two panel discussions within the Annual Conference of the Vienna Initiative, held in Croatia this year.

"Given the underdevelopment of capital markets in the Western Balkans Region, banking systems are the main external source of financing for the corporate sector. Hence, the solid credit support during the pandemic helped companies to cope more easily with the liquidity shock they faced with. "In order to pursue with the credit support to companies, which is especially important when fiscal support is declining, it is necessary to maintain the capital and liquidity capacities of the banking systems". This was said by the Governor at the first panel discussion dedicated to the challenges of the banking system, chaired by  Mr. Francis Mullig, Financial System Director at the European Bank for Reconstruction and Development (EBRD).

She also stressed that in order to further strengthen the resilience of the banking system, together with the Ministry of Finance, the domestic regulations will further strengthen, as well as to harmonize with the European regulations. For that purpose, new Law on Financial Stability has been prepared, while working, as well, on the new Bank Resolution Law and a new Banking Law.

At the second panel discussion, chaired by the EBRD Vice President, Mr Mark Bowman, who was committed to the challenges of monetary policy in the CEI Region, the Governor said that one of the lessons learned from the global economic crisis was that there should be no premature withdrawal of support for the real sector, since it could slow the recovery process of the economy. She stressed that the policy pursued by the National Bank in the coming period will be aimed at supporting economic growth, given the solid level of foreign reserves and inflation.

"However, the space for reaction to macroeconomic policies is not unlimited and therefore, it is necessary to pay more attention to structural policies, which are key to increasing the long-term potential for economic growth," said Angelovska Bezhoska.

This high-profile forum is attended by central bank governors and heads of regulatory bodies, representatives of the International Monetary Fund, the European Commission, the European Bank for Reconstruction and Development, the European Investment Bank, the World Bank, as well as representatives of the largest banking groups. The Vienna Initiative, by the way, is a framework for maintaining the financial stability of developing countries in Europe, formed in response to the global financial crisis.