SDSM: New government loan pushes public debt above 63% of GDP

SDSM has accused the government and Prime Minister Hristijan Mickoski of plunging the country into new debt. According to the party, its previous warnings are becoming a reality, as North Macedonia is taking out a new loan of €250 million.

The opposition party said that at a session held on 29 September, the Mickoski government approved borrowing of up to €250 million through the issuance of debt securities on the international financial market. According to SDSM, the funds will be used to support the budget.

“By the end of this year, new loans worth €250 million will be taken out, while in 2026 there will be no more debts to repay. This loan is not being taken to repay debts, but for pensions and salaries, because there is no money in the budget, as well as, of course, for criminal tenders,” SDSM said in its response.

SDSM claims that, following this borrowing, public debt has reached €11 billion. According to the party, if hidden liabilities to PESR and other public enterprises are also taken into account, the debt exceeds 63% of GDP.

The party also pointed out that the budget deficit amounts to €900 million, while the shortfall in the Pension Fund is €1 billion. “The situation with the budget and the national treasury is catastrophic,” SDSM said.

The opposition believes that, in the absence of economic results, Mickoski is leading citizens toward “debt slavery.” According to SDSM, within just two years he has increased the debt by €4 billion, an amount that represents half of the country’s total debt from independence to the present day./Telegrafi/