1. Dimitar Bogov Vice Governor
Macroeconomic Indicators and Financial Sector Developments in the Recent Crisis Environment -The Case of the Republic of Macedonia-
Dimitar Bogov
Vice Governor
April, 2010

2. Content Macedonian economy before Lehman bankruptcy
Transmission channels of the world economic crisis
Policy responses
Banking sector developments
The latest developments

3. Before “Lehman”, Macedonian economy was booming, but, imbalances were building up

10. Then, it happened “Lehman”

17. Policy responses - monetary
Prudential measures (December 2008)
Policy rate increase from 7% to 9% (March 2009)
Increase of reserve requirements for f/x deposits from 10% to 13% (May 2009)

18. Policy responses - fiscal
Cut of discretionary expenditures in order to meet the deficit target of 2.8% (June and September 2009)
Issue of external debt (July 2009)

21. Financial stability indicators

22. Latest developments Export is picking up Import is still declining
Weak domestic demand
Industrial production is volatile
Fiscal revenues are still weak
Stable foreign exchange market
Deposits growth rate is improving
Credit growth rate still weak but positive

23. Thank you for the attention