FYR Macedonia’s finance authorities and the International Monetary Fund (IMF) Mission to Skopje are close to reaching an agreement regarding the IMF offer for an open credit line in amount of at least 400 million euros, Vice PM and Finance Minister Zoran Stavreski said Monday.

He has kicked off final talks with an IMF delegation led by Wes McGrew, which are expected to end in the next couple of days with a decision to accept the offer.

“We’re closer to reaching a decision to use the IMF credit line, which offers exceptionally favorable conditions. In line with what is being offered, the country in the first year will be able to use 500% of the quota – for Macedonia this means 400 million euros for a 12-month period. Given the fact that there is an option to use the credit line for a period of 24 months, it is possible to discuss during talks whether to increase the initial amount of 400 million,” stated Stavreski.

Macedonia, he added, is the first country to be given the IMF offer based on its sound and quality economic policies.

Funds from the IMF offer will be mostly used to support the budget and capital investments.

The precautionary credit line is a new IMF facility meant to provide insurance for countries with strong economic policies and does not have the conditionality of other IMF loans.

By officially approving the IMF credit line, according to Stavreski, conditions and circumstances for possible issuance of a Eurobond will be improved. “It is a firm signal that IMF backs Macedonia’s policies and that the country has an alternative rather than issuing a Eurobond at any price,” he stressed.