IMF, N. Macedonia agree on 530 mln euro arrangement under PLL

October 10 (SeeNews) - The International Monetary Fund (IMF) and North Macedonia reached a staff-level agreement on a 24-month 530 million euro ($514 million) arrangement under the Precautionary and Liquidity Line (PLL), the finance ministry said on Monday.

The very purpose of the instrument is to provide liquidity support to healthy economies in times of shocks and crises, such as the current global scenario, the ministry said in a press release.

After the final approval of this instrument by the IMF board, which is expected later this month, 110 million euro will be immediately available to North Macedonia to finance budgetary needs and to more easily face the shocks brought by the energy and price crisis, the ministry added.

The National Bank of the Republic of North Macedonia (NBRNM) needs to continue its monetary policy tightening and stand ready to act as needed to address any large and persistent inflation differential with the euro area or significant pressures on international reserves, the IMF said in separate statement following a visit by an IMF team led by Ms Bergljot Barkbu which conducted meetings with the authorities of North Macedonia to discuss policies under the PLL.