SKOPJE (Macedonia), December 16 (SeeNews) – The World Bank said it approved a $30 million (20.6 million euro) loan for Macedonia to help it emerge from the global crisis and to resume a sustained high economic growth.
The World Bank issued the following statement late on Tuesday:
"The World Bank today approved US$30 million for the First Programmatic Development Policy Loan (PDPL) for FYR Macedonia, which will help the country to emerge from the crisis on a stronger footing and to resume sustained high growth and convergence in living standards with the rest of
Europe.
“The Programmatic Development Policy Loan supports the Government in its efforts to tackle the consequences of the international economic crisis,” said Evgenij Najdov, Senior Country Economist.
“It is designed to help the country maintain macroeconomic stability, support fiscal policy that will provide sustainable, timely, and targeted stimulus to the economy, assist the vulnerable in coping with the crisis, and maintain stability of the financial sector.”
The ongoing international economic crisis has brought to a halt the acceleration of economic activity of the last few years in the FYR Macedonia. Following growth rates of close to 6 percent prior to the crisis, output growth stagnated over the last three quarters. Industrial production has been declining, business confidence is low, and there is not a lot of money available for lending. The result is a need for a set of policies that will preserve macroeconomic stability and mitigate the impact of the global crisis, while at the same time better preparing the country to benefit from the recovery once it occurs.
The Country Partnership Strategy Progress Report (CPSPR), presented to the Board in March 2009, maintains flexibility to respond promptly and adequately to the evolving economic situation and includes the possibility for a DPL to support an endorsable policy response to the global economic crisis. The operation builds on the extensive policy dialogue the Bank has had with the authorities, and includes areas in which the Bank has comparative
advantage. In addition, it reflects the nature of Bank engagement in the country based on strong partnership and flexibility.
The Programmatic Development Policy Loan (DPL 1) is the first in a series of two programmatic Development Policy Loans (DPLs) designed to be disbursed during calendar years 2009 and 2010.
FYR Macedonia joined the World Bank in 1994. Since then, commitments to the country total more than US$800 million."
($= 0.688 euro)