North Macedonia's Ministry of Finance flags EUR 8bn five-year liability servicing pressure and keeps further support measures under review

North Macedonia's Ministry of Finance published remarks by Finance Minister Gordana Dimitrieska-Kocoska at a National Bank conference, highlighting heightened budget pressures from large upcoming liability servicing needs and rising interest costs, and signalling that any further government measures will be targeted and calibrated to available fiscal space and inflation risks. The minister said liability servicing over the next five years exceeds EUR 8bn and described servicing levels as historically high. She also pointed to interest expenditure rising from about 1% of GDP in 2022 to almost 2% of GDP in 2026, arguing this constrains room for additional budget action. While noting revenues are being collected in line with the plan and are growing year-on-year, she cautioned against repeating large deficits such as 8% and said the government moved first on VAT measures because conditions were most favourable, with further responses to follow as needs allow. She added that companies should contribute alongside government support and reported no significant reactions or price impacts so far, while stressing the priority of fiscal consolidation and ongoing coordination with the National Bank on inflation and the design of measures. The government will continue monitoring developments and will assess whether new measures are needed.