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UPDATE 1-Macedonia open to IMF aid if econ crisis worsens-finmin

Published 05/14/2009, 08:29 AM
Updated 05/14/2009, 08:33 AM

(Adds quotes, details)

SKOPJE, May 14 (Reuters) - Macedonia has not asked the International Monetary Fund for a loan, but remains open to a deal in the future, the finance minister said on Thursday at the end of an IMF mission.

"We did not speak about an arrangement," Trajko Slaveski told reporters. "We remain open that ultimately we may agree (about a deal) if there's a big downturn abroad."

The mission, led by Wes McGrew, arrived in Macedonia on May 7 to assess the economy and its policy response. McGrew said the IMF remains ready "to support Macedonia in any way."

"We are ready to discuss technical assistance or financial aid, but that's authorities' choice," he said.

The IMF and Macedonia differed on their economic forecast for the landlocked poor Balkan nation of two million people that was once part of communist Yugoslavia.

Slaveski said the government remains confident in its previously estimate of one percent GDP growth in 2009, citing a recent increase in worldwide commodity prices that could help bring in more money from the country's exports.

McGrew called the official growth estimate "very high."

"Our readings suggest that the one percent growth is on the optimistic side," he said.

"The balance of payments, declining exports and remittances are likely to be the challenge area for Macedonia," he continued. "All this is making a reduction of the current account deficit increasingly difficult."

Macedonia's central bank has slashed its GDP growth forecast to minus 0.4 percent from a previous forecast for a 3.0-4.4 percent. Its economy had grown at a steady annual 4-5 percent for years.

Macedonia paid off a previous 32 million euros IMF loan in 2007. (Reporting by Kole Casule; Writing by Adam Tanner; Editing by Victoria Main)

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