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Public debt at highly alarming level.

Macedonia's public debt is drawing near 50 percent of GDP, as envisaged in the Government's fiscal strategy. According to some economic analysts, the situation is alarming because the public debt is in reality much higher than 47 percent of GDP.

"These numbers are stated in relation to the projected GDP growth for last year of 3.5 percent, which was not really achieved. There are also many hidden, unstated matured debts that the state is not reporting as liabilities," says Slobodan Najdovski, an economic analyst.

Najdovski emphasizes that the Macedonian economy doesn't have the capacity to withstand this level of indebtedness. Particularly alarming is also the fact that a great part of the loans is taken from domestic lenders.

In the last three months, the Government borrowed 3 million euros a day, says the additional Deputy Minister of Finance, Kire Naumov.

"If the borrowing continues at this rate, bearing in mind the authorities borrowed 40 million euros in the first 2 or 3 weeks of January, by the middle of the year our debt will go beyond 50 percent of GDP," says Naumov.

VMRO-DPMNE replied that Macedonia was still one of Europe's least indebted countries and accused SDSM of being responsible for the fact that they were still repaying loans from the time this party was in office.

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Title Annotation:BUSINESS NEWS
Publication:INFOMAC Daily News Service
Date:Feb 1, 2016
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