Former Yugoslav Republic of Macedonia; First Review Under the Stand-By Arrangement, and Requests for Waiver of Performance Criteria, and Extension of Repurchase Expectations: Staff Report; Staff Statement; Press Release on the Executive Board Discussions; and Statement by the Executive Director for the Former Yugoslav Republic of Macedonia

This paper discusses key findings of the First Review Under the Stand-By Arrangement for Macedonia. Macroeconomic performance of Macedonia remains strong. Through end-December 2005, the authorities met all of the program’s quantitative performance criteria. Growth has remained steady at about 4 percent. Gross reserves have risen above €1 billion, allowing interest rates on National Bank of Macedonia bills to fall since November from 10 percent to 7 percent. To complete the First Review, the authorities have committed to strong policies, including measures to correct for delays in the program’s structural reforms.