Members of the Parliament kicked off Thursday a debate on the draft-law on indebting the Republic of Macedonia with a loan from the Deutshce Bank and Citibank.

The law stipulates that Macedonia receives a EUR 130 million loan at favorable conditions, including a 5-year payment period, with a current interest rate of 4.25 percent, plus 0.5 percent World Bank commission for the loan's guarantee. The amount will be paid after the completion of the fifth year from the day of the funds' withdrawal.

The loan funds will be used for budget needs, current expenditures and capital investments.

"Macedonia has been suffering the consequences of the economic developments in Europe. The inflow of budget revenues is facing certain risks, as the projected economic growth has not considered those trends of Europe's economy. Hence, the situation calls for caution in making economic decisions and abiding to the fiscal parameters, endorsed by the Parliament," Vice-Premier and Finance Minister Zoran Stabreski told to the MPs.

Such loan, he said, is being approved to countries that enjoy the World Bank trust, being considered as low-indebted and ones with sound macroeconomic policies.

Members of the Parliament kicked off Thursday a debate on the draft-law on indebting the Republic of Macedonia with a loan from the Deutshce Bank and Citibank.

The law stipulates that Macedonia receives a EUR 130 million loan at favorable conditions, including a 5-year payment period, with a current interest rate of 4.25 percent, plus 0.5 percent World Bank commission for the loan's guarantee. The amount will be paid after the completion of the fifth year from the day of the funds' withdrawal.

The loan funds will be used for budget needs, current expenditures and capital investments.

"Macedonia has been suffering the consequences of the economic developments in Europe. The inflow of budget revenues is facing certain risks, as the projected economic growth has not considered those trends of Europe's economy. Hence, the situation calls for caution in making economic decisions and abiding to the fiscal parameters, endorsed by the Parliament," Vice-Premier and Finance Minister Zoran Stabreski told to the MPs.

Such loan, he said, is being approved to countries that enjoy the World Bank trust, being considered as low-indebted and ones with sound macroeconomic policies.