1 of 3
The score has improved by 3 points, upgrading the rating to BB. The resolution of the name dispute with Greece improves North Macedonia's EU accession prospects. Economic growth recovered in 2018, and the government has improved fiscal transparency, and the sustainability of the pension and healthcare systems, supporting the rating upgrade. External debt is higher than the median for other BB-rated countries, but public debt is broadly in line with the BB-rated median.
The currency risk rating remains at BB and the score has improved by 2 points, to 41. Foreign-exchange reserve coverage of short-term debt is lower than the median for BB-rated countries, but gross financing coverage is adequate. The currency risk rating outlook is stable, as the denar does not appear overvalued. The Economist Intelligence Unit expects a de facto peg to the euro to continue in 2019-20.
The banking sector risk rating remains at BB, but the score has improved by 3 points, to 45, reflecting an increase in banks' net foreign asset position. Non-performing loans fell to 5% of the total loan stock in 2018 and are fully provisioned. Capital-adequacy and liquidity measures indicate a banking system that is stable overall. The outlook is stable.
The currency risk rating remains at BB and the score has improved by 2 points, to 41. Foreign-exchange reserve coverage of short-term debt is lower than the median for BB-rated countries, but gross financing coverage is adequate. The currency risk rating outlook is stable, as the denar does not appear overvalued. The Economist Intelligence Unit expects a de facto peg to the euro to continue in 2019-20.
The banking sector risk rating remains at BB, but the score has improved by 3 points, to 45, reflecting an increase in banks' net foreign asset position. Non-performing loans fell to 5% of the total loan stock in 2018 and are fully provisioned. Capital-adequacy and liquidity measures indicate a banking system that is stable overall. The outlook is stable.
Note: Product cover images may vary from those shown
2 of 3
Country Risk Service North Macedonia 2nd Quarter
Risk assessment
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk
Definitions
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk
Overall country risk
Sovereign risk
Current assessment
Positive factors
Negative factors
Rating outlook
Currency risk
Current assessment
Positive factors
Negative factors
Rating outlook
Foreign-exchange regime
Banking sector risk
Current assessment
Positive factors
Negative factors
Rating outlook
Generic risks
Political risk assessment
Economic structure risk assessment
Country risk
Overall country risk
Central scenario for 2019-23: Political stability
Central scenario for 2019-23: Election watch
Central scenario for 2019-23: International relations
Central scenario for 2019-23: Policy trends
Central scenario for 2019-23: Fiscal policy
Central scenario for 2019-23: Monetary policy
Central scenario for 2019-23: Economic growth
Central scenario for 2019-23: Inflation
Central scenario for 2019-23: Exchange rates
Central scenario for 2019-23: External sector
Central scenario for 2019-23: External financing requirement
Central scenario for 2019-23: External debt
Key risk indicators
Ratings summary
Quarterly indicators
International assumptions summary
Economic structure
Public finances
Exchange rates, interest rates and prices
Financial sector
Current account
International liquidity
Foreign payment and liquidity indicators
External trade
External financing requirement
External debt stock
External debt service
Risk assessment
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk
Definitions
Sovereign risk
Currency risk
Banking sector risk
Political risk
Economic structure risk
Overall country risk
Sovereign risk
Current assessment
Positive factors
Negative factors
Rating outlook
Currency risk
Current assessment
Positive factors
Negative factors
Rating outlook
Foreign-exchange regime
Banking sector risk
Current assessment
Positive factors
Negative factors
Rating outlook
Generic risks
Political risk assessment
Economic structure risk assessment
Country risk
Overall country risk
Central scenario for 2019-23: Political stability
Central scenario for 2019-23: Election watch
Central scenario for 2019-23: International relations
Central scenario for 2019-23: Policy trends
Central scenario for 2019-23: Fiscal policy
Central scenario for 2019-23: Monetary policy
Central scenario for 2019-23: Economic growth
Central scenario for 2019-23: Inflation
Central scenario for 2019-23: Exchange rates
Central scenario for 2019-23: External sector
Central scenario for 2019-23: External financing requirement
Central scenario for 2019-23: External debt
Key risk indicators
Ratings summary
Quarterly indicators
International assumptions summary
Economic structure
Public finances
Exchange rates, interest rates and prices
Financial sector
Current account
International liquidity
Foreign payment and liquidity indicators
External trade
External financing requirement
External debt stock
External debt service
Note: Product cover images may vary from those shown
3 of 3
LOADING...
4 of 3
Note: Product cover images may vary from those shown
