Page 74 - Central & Southeast Outlook 2020
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    overall debt stock.
 4.6 ​Debt - North Macedonia
       North Macedonia’s general government debt is set to rise further in the coming years,​as a result of primary fiscal deficits and financing requirements for significant repayment obligations in 2020 and 2021.
The European Bank for Reconstruction and Development (EBRD) said that the country's public debt is assessed as relatively high while the structure of government spending worsened further in 2018, shifting from capital to current expenditures.
The European Commission projects public debt of 42.5% of GDP in 2020.
The government should further improve revenue collection, reduce tax exemptions, rationalise subsidies and ensure long-term pension sustainability, the Commission said, noting that the introduction of fiscal rules is also needed as North ​Macedonia​is the only Western Balkans country lacking such rules.
The European Commission also said that fi​scal consolidation measures are having a beneficial impact on the primary balance, but are not sufficient to stabilise debt level.
North Macedonia is rated ​BB-/Stable/B by S&P and BB/negative by Fitch.
The last time, North ​Macedonia​issued a Eurobond was on January 11, 2018. The seven-year €500mn ​Eurobond​was sold with an annual interest rate of 2.75% and funds were aimed at financing the budget deficit and to repay all debts.
No new Eurobond issue is planned for now.
 4.7 ​Debt - Moldova
   It is estimated that as of December 31, 2020, Moldova’s public debt will not exceed MDL67.5bn (29.6% of GDP). ​The internal debt will amount to MDL25.7bn and the external debt MDL41.8bn.
According to the draft law on the state (central government) budget for 2020, approved by the new government in November, Moldova plans external borrowing of over $500mn in 2020, a year during which it has to repay $160mn. Over the next three years, Moldova’s external debt is expected to rise by around $1bn, compared to a more moderate advance of $0.5bn over the past decade.
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