Skopje, 9 September 2020
The cooperation and the constant communication between the National Bank and the Ministry of Finance are of exceptional importance for permanent and appropriate monitoring of the economic developments as well as for maintaining the financial and the overall macroeconomic stability. They are and have to remain a common priority of both institutions. These are some of the conclusions from today's meeting between the National Bank Governor Anita Angelovska Bezhoska and the Finance Minister Fatmir Besimi.
They, among other things, have addressed the current situation in the domestic economy after the first blow of the corona crisis. As pointed out, they expect that the greatest hit is the one experienced in the second quarter of this year and that if no other unfavorable development of the health crisis occurs, we can move on focusing on the gradual economic recovery. However, the challenges are not over yet - policy makers must continue to monitor developments, support citizens and companies and, when necessary, take coordinated actions.
Governor Angelovska Bezhoska pointed out that the effects of the corona crisis on the domestic economy are as expected in the National Bank forecasts. The economic contraction in the second quarter is very close to the National Bank's forecast of 12%. However, as the governor said, some indicators are better than expected, including the foreign reserves and the credit and deposit activity of the banking system.
"The National Bank is fully prepared to respond appropriately within its mandate to any new wave of the health crisis. In that context, it is very important that we have been provided an access to euro liquidity from the European Central Bank for the first time, and we would use it if needed", said Governor Angelovska Bezhoska.
"The current COVID-19 crisis is a historic challenge, not only for us, but also globally. We have been closely monitoring the developments and taking appropriate measures. This however requires a coordinated and professional approach, primarily coordinated fiscal and monetary policy, and in broader terms, coherent economic policy. Therefore in the next period we will have to agree on the specific activities with all stakeholders. Along with the measures that need to be taken now for economic recovery, we should and will work on measures and reforms to improve competitiveness of our economy and adjust to the "new normal". The priority will be to mitigate the effects of the corona crisis and provide a solid basis for economic recovery, ensuring accelerated growth in the post-crisis period," said Minister Besimi.
Governor Angelovska Bezhoska and Minister Besimi shared the opinion that it is crucial that financial stability has been maintained and strengthened throughout the corona crisis, as confirmed not only by the indicators followed by both institutions, but also the international financial institutions’ perceptions and assessments of the resilience of our financial system to shocks. These are supported by the assessments indicated in the latest report of Standard and Poor's noting that the banking system remains stable.
They both stressed that it is the healthy, safe and sound banking sector that delivers a key contribution to the overall financial stability and stabilization of investor expectations, and thus support for economic growth.
In the meeting, Governor Angelovska Bezhoska congratulated Minister Besimi on his election as Minister and the beginning of his term. She also expressed confidence that in the forthcoming period the expert teams of the Ministry of Finance and the National Bank, besides the cooperation within the regular institutional activities, will be committed to finalizing joint projects, including the new Law on Payment Services and Payment Systems and the Law on Macro Prudential Supervision, as well as other laws that should further strengthen the financial system. Other new projects are planned as a joint contribution to the domestic economy.