Publication: FYR Macedonia Policy-Based Guarantee : Supporting the Development Agenda and Strengthening Access to Capital Markets
Date
2013-01
ISSN
Published
2013-01
Author(s)
Najdov, Evgenij
Abstract
The ongoing global economic turmoil is
seriously impeding client countries access to capital
markets, with relatively little regard for the fundamentals
of the countries involved. Growing risk aversion among
investors has triggered a flight-to-quality that is
affecting all but the safest assets (AAA-rated). Small,
open, and developing economies in Europe and Central Asia,
including FYR Macedonia, are being exceptionally hurt.
Despite its history of prudent macroeconomic policies and
progress on structural reforms, FYR Macedonia s access to
capital markets has been virtually closed or available only
on very unfavorable terms. Policy-Based Guarantees (PBG)
help well-performing clients with a track record of macro
stability and structural reforms mitigate market access
risks while advancing a country s development policy
dialogue. PBGs also have the added benefit of catalyzing
private capital flows by alleviating critical risks. The PBG
extended by the World Bank to FYR Macedonia ensured the
country s access to markets in a virtually closed market
environment and at highly competitive terms.
Citation
“Najdov, Evgenij. 2013. FYR Macedonia Policy-Based Guarantee : Supporting the Development Agenda and Strengthening Access to Capital Markets. Europe and Central Asia knowledge brief;issue no. 60. © World Bank, Washington, DC. http://hdl.handle.net/10986/17044 License: CC BY 3.0 IGO.”