In June 2015, the government of Macedonia announced a rule change for commercial cross-border financial flows.



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Inception date: 28 Jun 2015 | Removal date: open ended

Controls on commercial transactions and investment instruments

The National Bank of the Republic of Macedonia, on 28 June 2015, announced its decision to take temporary preventive measures to limit the outflow of capital to Greece. The measures include a prohibition of transactions with Greek counterparts, the requirement to recall loans as well as the prohbition from purchasing Greek debt instruments.
To restrict capital outflows from residents of the Republic of Macedonia (natural persons and legal entities) to Greek entities, the Macedonian National bank prohibited transfers based on newly concluded transactions. Capital transactions based on prior agreements are not affected by this restriction. Further excemptions from this prohibition are: (1)private transfers or transactions based on the exchange of goods and services; (2) common banking payment instruments and credit instruments linked to the turnover of goods and services between Macedonian residents and entities of the Republic of Greece; (3) outflows based on realized dividends.
Additionally, the National Bank requires all Macedonian banks to withdraw all loans and deposits from banks based in the Republic of Greece and their branches and subsidiaries in the Republic of Greece or abroad, regardless of the agreed maturity. Nevertheless, an exception to this requirement has been made for the funds on the current accounts with those banks.
Finally, the existing prudential and supervisory regulation and limits for banks in terms of investments in securities including Greek securities are complemented with an explicit ban on all Macedonian residents to invest in Greek debt instruments (issued by the central bank, central government, local and regional authorities in the Republic of Greece, as well as securities issued by legal entities established in the Republic of Greece and their branches and subsidiaries in the Republic of Greece and abroad).