Washington-Skopje, 20 November 2020 

Given the criticality of the NBRNM’s capacity to take prompt supervisory actions to ensure the stability of the financial system, it is essential to preserve the NBRNM’s independence. This will enable it to continue fulfilling its mandates of maintaining price stability and protecting financial stability, which are crucial preconditions for sustainable growth.

This was emphasized by the Head of the IMF mission to our country, Bergljot Barkbu, in the statement following the annual regular meetings which were held via video-conference link, in the period from 9 to 18 November. At the meetings, the participants discussed the latest developments in the economic and in the financial sector, as well as the economic prospects.

“The accommodative monetary policy stance is appropriate and the NBRNM stands ready to act as needed to protect the de-facto exchange rate peg.” - Barkbu estimates.

In the statement, among other things, she also emphasizes that according to the assessments of the IMF mission, the overall banking system remains well capitalized and profitable.

“It is important to maintain strict loan classification and provisioning rules to ensure that banks set aside sufficient reserves to cover potential losses. Banks should be encouraged to refrain from discretionary dividend distribution and share buy-backs.” - said the Head of the IMF mission team.

The recommendations and activities that the NBRNM as regulator has undertaken in the past period are also in accordance with such perceptions.

Otherwise, the statement also stresses the assessment of the IMF mission, that the timely policy actions taken by the Government and the National Bank of the Republic of North Macedonia (NBRNM) have played an essential role in mitigating the economic and social impact of the pandemic.

The IMF mission underlines that economic activity is expected to rebound in 2021, but the second wave of the pandemic poses risks to the strength of the rebound. At the same time, it is pointed out that addressing the health crisis remains a top priority and will be critical for protecting people and safeguarding the economy.

According to the assessments of the IMF mission, announced in Barkbu’s statement, accommodative monetary policy should be maintained until the recovery is well underway. At the same time, it is mentioned that adequate provisioning for banks’ potential losses remains essential. The assessments and recommendations of the NBRNM are also in line with this.

In the period from 9 to 18 November, the IMF mission led by Bergljot Barkbu also held a series of meetings with the expert teams of the NBRNM, as well as a final meeting with the Governor Anita Angelovska Bezhoska and the overall management of the NBRNM.