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EVENTS

Anita Angelovska Anita Angelovska Bezoska, Vice-Governor of the National Bank of the Republic of Macedonia
Bezoska, (NBRM), explained the environment and the measures NBRM took with regard to the global
Vice-Governor financial crisis, including the reduction of the NBRM’s key interest rate to the historically
of the NBRM lowest level, in order to support the credit and economic growth. This contributed to the
decline of the interest rates through the transmission mechanism. She pointed out, however,
that the trend of interest rate decline in the country started even before the crisis and is due
to structural changes, such as the increased saving encouraged by the stable macroeconomic
environment that lasts for many years, etc. Bezoska stressed that the environment of low
interest rates brings also a threat, because it stimulates both the net-savers and the net-
debtors to take bigger risk. Regarding the future, the room for further accommodative
monetary policy of NBRM is limited and the movements will depend on the inflation and
developments and expected trend with the foreign reserves.

Aleksandar Stojkov, professor at the Faculty of Law “Iustinianus Primus” stated that the Aleksandar Stojkov,
low interest rates are a global phenomenon and that the world is overwhelmed with saving. at the Faculty of Law
According to more recent studies, in the countries of CEE 75 percent of the change is due “Iustinianus Primus”
to global and 25 percent of the change to local factors. Stojkov pointed out that the interest
rates in Macedonia are low, but not for 50% of the Macedonian households, those who use
overdrafts or credit cards. He gave an actual proposal for limitation of the banks regarding
the so-called red interest rates on allowed overdrafts, though amendment of Article 266a of
the Law on Obligations. In an environment of low interest rates debtors should reconsider
the opportunities for refinancing their debts under more favorable terms.

Ivan Steriev, CEO Ivan Steriev, CEO of the Macedonian Stock Exchange, discussed the operations of the stock
of the Macedonian exchange at a time of low interest rates. Theoretically, one should expect economic agents to
Stock Exchange turn to alternative financial instruments that bring higher yield, which on the foreign stock
exchanges is manifested in an increase of the prices of shares, even appearance of so-called
bubbles, but that does not happen in Macedonia. He stressed that the stock exchange is not
a place for quick profit, but last years there have been shares bringing a yield of even 10%,
which is very good when the deposit interest rates are low. When the interest rates are low
investors could be attracted, too, because it is a good time to increase the companies’ capital.
Steriev pointed out that the number of shareholders in the companies included in MBI10
Index is increasing, which means that there is a critical mass of shareholders who recognize
these shares.

Zoran Jovanovski, Co-owner of the magazine “Economy and Business” pointed out that Zoran Jovanovski,
the environment of low interest rates is the right time to broaden the business, because the Co-owner of the
cost for that is the lowest. He believes that the low interest rates will remain in the future, magazine “Economy
in a medium run. Even when they start increasing that will happen bit by bit, gradually, and Business”
and at the end they will not reach the levels from the past. According to him, this is an
excellent moment for issuance of corporate bond. That is a win-win situation. Companies
that will issue it will lock down the low interest rate for a longer period of time, for example
10 years, while the buyers will secure a significantly higher return from the one they get at
this moment. Jovanovski announced that “Economy and Business” will organize also other
debates for essentially important economic topics.

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