Stavreski: Macedonia gets EUR 130 million loan from Deutsche Bank, City Bank

Republic of Macedonia has received a EUR 130 million loan offer from Deutsche Bank and City Bank under favorable conditions, which the Government decided to accept on Tuesday, said Vice Premier and Finance Minister Zoran Stavreski.

The Government passed a draft-law that has been submitted for Parliament approval.

The loan conditions include a 5-year payment period, with a current interest rate of 4.25 percent, plus 0.5 percent World Bank commission for the loan's guarantee. The amount will be paid after the completion of the fifth year from the day of the funds' withdrawal.

According to Stavreski, the loan conditions are exceptionally favorable, taking into account that total loan costs would not exceed 4.8 percent.

"This offer is another confirmation of recent Doing Business results and the Fitch confirmation over the general economic policies, seeing Macedonia as a stable country with strong economic performances and macroeconomic policies. Therefore, even in a time when countries find it difficult to get access to funds, Republic of Macedonia has not only received EUR 130 million, but at exceptionally favorable conditions", underlined FinMin Stavreski.

The loan funds will be used for coverage of this year's budget deficit and partly for 2012.