Banks should intensify the process of investments in the corporate sector because they are sufficiently stable and liquid, said Finance Minister Kiril Minoski on Friday.

"There is sufficient stability and liquidity in the banking sector, while investments contribute to the economic growth", said Minoski after today's regular session of the Financial Stability Committee at the National Bank of the Republic of Macedonia (NBRM).

According to him, the Finance Ministry has managed to secure sufficient funds for capital investments through the budget review, whereas the eurobond has been successfully issued, meaning that banks can focus on company crediting towards a positive economic growth.

"The political crisis has had an effect, resulting in a more prudent policy by banks, a more restrictive policy of corporate crediting was introduced, accompanied by restrained stance by investors. However, there is now proper stability and liquidity in the banking sector", stressed Minoski.

NBRM Governor Dimitar Bogov said the banking system has gone through a real stress-test, demonstrating high resistance to shocks.

Regarding the recent eurobond, FinMin Minoski said its issuance was a necessity. Purchased from investors mainly coming from the EU and the U.S., the funds are expected to be transferred in the coming days and used for budgetary purposes in 2016 and 2017.

"We intend to cover the deficit as much as possible by using funds from the international financial capital. The objective is to leave more funds to the banks that they could use for crediting, because our main objective is to develop the private sector. A more developed private sector means better tax base", elaborated Minoski.

Governor Bogov said the eurobond issuance is under the jurisdiction of the Finance Ministry.

"The central bank and the ministry openly discuss on all issues, but NBRM is not the institution to assess this move. The bank is responsible for the monetary policy, which is appropriately harmonized with the fiscal policy", stressed Bogov.

Asked about the country's GDP growth rate, the NBRM Governor said it would range between the 3.5-percent projection in May and the pessimistic forecast of 1.6 percent.

"However, it is still early to say and this depends much on the stabilization of the political situation in the country", added Bogov.

The Financial Stability Committee session tackled the latest regulations in the EU banking sector, i.e. amendments to the Law on Banks towards increasing the resistence and security of the banking sector on external shocks, such as the recent global economic crisis.