The executive board of the International Monetary Fund (IMF) has approved a two-year arrangement for North Macedonia under the Precautionary and Liquidity Line (PLL) of about €530mn, the IMF announced on November 22.
The IMF and North Macedonia reached an agreement on a 24-month PLL arrangement to address the economic fallout of global shocks from the COVID-19 pandemic and Russia’s invasion of Ukraine on October 10.
The approval of the PLL arrangement allows an immediate disbursement of about €110mn, which would be followed by another tranche of about €155mn upon completion of the first review planned in May 2023.
North Macedonia plans to draw on the PLL arrangement during the first year, while treating the amounts available during the second year of the arrangement as precautionary.
“The two-year PLL arrangement will support the authorities’ policies and boost international reserves, and can also serve as catalyst to obtain other external financing,” IMF managing director Bo Li said in the statement.
IMF said that North Macedonia qualifies under the PLL because it has sound economic fundamentals and institutional policy frameworks, is implementing ― and has a track record of implementing ― sound policies, and remains committed to maintaining such policies.