Press Release No. 11/98

Press Release: Former Yugoslav Republic of Macedonia Draws €220 Million Under the Precautionary Credit Line Arrangement

March 23, 2011

The Macedonian authorities have informed the International Monetary Fund (IMF) that they decided to draw €220 million out of the €390 million available to them under the Precautionary Credit Line (PCL) arrangement approved on January 19, 2011 (see Press Release No. 11/14).

The authorities informed the IMF that their decision to draw upon the PCL reflects the changed circumstances brought about by the early elections, including a delay in the planned Eurobond issuance. The authorities have stated that they will make their best efforts to repay the PCL drawing ahead of schedule, provided that financing conditions are favorable.

The PCL was designed for countries that, despite having sound policies and fundamentals, have some remaining vulnerabilities. The availability of resources under the PCL, if needed, provides insurance against the possibility of an unexpected change in financing circumstances.