The FINANCIAL -- Hungary took a stand Monday in a virulent dispute between Greece and Macedonia, announcing it recognised the latter as the "Republic of Macedonia" despite a naming row that has seen Athens block its neighbour's bid to join the EU.

Since Skopje proclaimed its independence from the former Yugoslavia in 1991, Greece has alleged that its use of the name Macedonia could imply a territorial claim to the northern Greek province of the same name.

This has led Athens to block the country's attempts to enter NATO and the European Union.

Hungary said its new official designation replaces the name "former Yugoslav Republic of Macedonia", which is how the country is recognised at the United Nations.

"The decision to recognise Macedonia under the name Republic of Macedonia was made a while back," Hungarian foreign ministry spokesman Gabor Kaleta told AFP.

As EUbusiness announced, it will now be applied in Hungary's bilateral relations with the small Balkan country, he added.

Kaleta did not specify the reasons behind the decision but said they would be spelled out in an upcoming statement.

In October, Greece offered Macedonia a draft memorandum of understanding "to move qualitatively forward" with negotiations on the dispute held under United Nations auspices, which have so far been fruitless.

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