The FINANCIAL — The World Bank Board of Directors today approved a Policy Based Guarantee of EUR 100 million for the Former Yugoslav Republic of Macedonia, providing partial coverage in support of the country borrowing EUR 130 million from international lenders.
This operation will help FYR Macedonia access new financing sources at improved terms and, at the same time, support the continuation of reforms necessary for improving the country’s resilience to shocks, and build the basis for a stronger economy in the future.Policy Based Guarantees are offered to countries with sound performance over a longer-term. FYR Macedonia has established a solid, decade-long track-record on macroeconomic stability, and has been implementing critical structural and social reforms to promote growth.
The reform program supported by the Policy Based Guarantee is also consistent with the country’s European Union accession efforts. It is expected to have a positive impact on the functioning of labor markets, the conduct of economic and monetary policy, and social cohesion, which have been identified as critical benchmarks to begin membership negotiations.The Policy Based Guarantee is issued by the International Bank for Reconstruction and Development and will cover EUR 100 million of the EUR 130 million principal of a commercial loan with a 5-year bullet maturity.
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