EFFECTIVENESS OF THE PUBLIC DEBT MANAGEMENT IN REPUBLIC OF NORTH MACEDONIA – CRITICAL ANALYSIS

The purpose of this research paper is to analyze the macroeconomic factors of public debt of the Republic of the North Macedonia and the strategy of managing the public debt. This paper tries to predict the debt forming and its’ servicing by taking into consideration the influence of the economic system, the capital investments, and the international cooperation of the country. One of the main reasons for the increase in public debt is an imbalance between government revenue and expenditure. When government expenditure exceeds its revenue, it may resort to borrowing to finance the shortfall, leading to an increase in public debt. This article, focusing on North Macedonia, provides a critical analysis of the country's borrowing tendencies and the assessment of key indicators to gain insights into the effectiveness of its public debt management. The analysis of the critical indicators of public debt, such as the debt-to-GDP ratio, the interest payment to revenue ratio, and the maturity structure of the debt portfolio, can provide valuable insights into a country's ability to service its debt obligations. The data used for this analysis is drawn from secondary sources such as the financial institutions of the Republic of North Macedonia and the World Bank. This information is used to provide a comprehensive understanding of the current state of public debt in North Macedonia and to develop strategic recommendations for its management.

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