UPDATED: Macedonia’s State Election Commission rejects opposition’s veto on €100mn domestic debt auction

By bne IntelliNews November 30, 2015

Macedonia's State Election Commission (SEC) rejected on November 30 the veto on a new €100mn domestic debt issuance scheduled for December 1, which was imposed by recently appointed deputy finance minister Kire Naumov.

Naumov's party, opposition SDSM, explained his decision with its view that any additional borrowing is an attempt for financing various forms of electoral fraud and corruption, citing remarks of the missions of OSCE/ODIHR from previous elections. However, SEC decided that the debt auction is not related to the elections.

Naumov was appointed deputy finance minister under the July agreement, which provided SDSM with veto rights on matters related to the early elections, scheduled for April 24.

On its part, Macedonia's ruling VMRO-DPMNE had warned that Naumov's veto questioned the payment of salaries, pensions and other regular disbursements made by the budget. The finance ministry informed that domestic debt maturing in December totals MKD5.2bn (€84.6mn).

In addition, a €150mn Eurobond matures on December 8, the ministry noted. However, last week the government sold a €270mn five-year Eurobond, saying that part of the proceeds will be used for the full redemption of the maturing notes.

Macedonia’s public debt stood at €3.94bn at end-September, equal to 43.9% of GDP. External and domestic public debt amounted to €2.65bn and €1.29bn, respectively.

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