North Macedonia increases domestic debt through new bond issuances

North Macedonia is experiencing a cycle of debt management where old obligations are being repaid through the issuance of new debt. According to the Ministry of Finance, the state has increased its debt to domestic creditors by nearly 540 million euros over the past year.

In July alone, the state repaid approximately 90.5 million euros to domestic creditors while simultaneously executing a borrowing plan of nearly 140 million euros. This new borrowing includes 15-year and 3-year bonds, as well as 12-month treasury bills issued through the Macedonian Stock Exchange.

While the government maintains that debt levels are under control and within the planned budget, some economists warn that a growing budget deficit and current account deficit indicate that the economy and public finances may struggle to function without continuous borrowing. Opposition members have also expressed concerns regarding the pace of debt accumulation.