Press Release No. 07/105

Press Release: IMF Welcomes FYR Macedonia's Decision to Repay its Outstanding Obligations, While Continuing with its IMF Stand-By Arrangement

May 23, 2007

Today, FYR Macedonia made advance repayment of its entire outstanding obligations to the International Monetary Fund (IMF), amounting to the equivalent of SDR 29.2 million (about US$44.2 million). These obligations resulted from the current three-year Stand-By Arrangement approved by the Executive Board on August 31, 2005 (see Press Release No. 05/196), as well as from obligations under previous arrangements.

Mr. Rodrigo de Rato, the Managing Director of the IMF, said, "I welcome FYR Macedonia's advance repayments of its outstanding obligations to the Fund. These repayments reflect FYR Macedonia's stronger than expected external position, and its improved access to international capital markets. More fundamentally, the repayments are consistent with FYR Macedonia's track record of sound macroeconomic policy management, as signaled by the successful completion of the second review under the Stand-By Arrangement in April 2007."

"We look forward to maintaining a close and constructive relationship with FYR Macedonia in the context of the current Stand-By Arrangement, which the authorities will continue to treat on a precautionary basis," Mr. de Rato added.

Total drawings by FYR Macedonia under the current Stand-By Arrangement were equivalent to SDR 10.5 million (about US$15.9 million). The current Stand-By Arrangement was approved for an amount equivalent to SDR 51.7 million (about US$78.2 million). Under the original schedule, the final repayment of outstanding credit from the IMF would have taken place in 2010.¹

¹ See additional information on FYR Macedonia's financial position in the Fund.