Macedonia (officially the Republic of Macedonia) is a country in Southeastern Europe (Balkan peninsula). Macedonia is a candidate for joining the European Union since 2004.
Main sectors of Macedonian economy are manufacturing (including mining and construction), trade, transportation, accommodation and agriculture.
Macedonian banking sector is highly concentrated and is dominated by foreign-controlled banks. Most of the banks in Macedonia operate as universal banks.
|Population (2016)||2 071 278 (0.00%)|
|EU Status||not a member, candidate since 2004|
|National Currency||MKD (Macedonian denar)|
|Nominal GDP (2015)||9.1 bln EUR (+0.05%)|
|Nominal GDP per Capita (2013)||3 900 EUR (+0.05%)|
|Real GDP Growth (2015)||3.7 % (2014: 3.6 %)|
|CPI, Year Average (2014)||-0.1 % (2013: 2.8 %)|
|Unemployment Rate (2014)||28.0 % (2013: 29.0 %)|
|Credit Ratings (as of Sep 2016)|
|Fitch||BB||speculative, outlook negative|
|S&P||BB-||non-investment grade speculative|
|Double Taxation Agreements||27 signed agreements|
|Automatic Exchange||no commitment to start|
|Financial Market Development||4.2 (max 7.0)||rank: 57th out of 138 countries|
|Banks' Soundness||5.3 (max 7.0)||rank: 52nd out of 138 countries|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||30 000 EUR|
|Banking Sector Structure|
|Number of Banks||16|
|Komercijalna Banka AD Skopje||Univerzalna Investiciona Banka AD Skopje|
|Stopanska Banka AD Skopje||ProCredit Bank AD Skopje|
|NLB Tutunska Banka AD Skopje||Halk Bank AD Skopje|
|Ohridska Banka AD Skopje|
|List of Banks in Macedonia|
According to Eurostat, nominal GDP of Macedonia in 2015 was 9.1 bln EUR.
Macedonia outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.6% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 3.7% which was above the Euro Area average (1.6%) and above the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.
In 2013, nominal GDP per capita in Macedonia was 3 900 EUR.
Macedonia has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -53.9% over the past 10 years (2003 - 2013). GDP per capita at PPP in 2014 - 2021 are IMF's estimates.
According to , inflation rate in Macedonia in 2014 expressed as annual percentages of average consumer prices was -0.1% which was below the Euro Area average (0.4%) and below the European Union average (0.6%). Inflation rates in 2015 - 2021 are IMF's estimates.
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Macedonia signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Macedonia and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Macedonia didn't sign the automatic information exchange agreement and didn't indicate a timeline of the start of the automatic information exchange.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
Although there is no IGA between Macedonia and the United States, banking and financial entities operating in Macedonia have reached the agreement with the IRS to participate in FATCA on an individual basis.
FATCA and European countries
According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Macedonia is scored 4.2 out of maximum 7.0 and ranked 57th out of 138 analysed economies. Soundness of banks is scored 5.3 bringing Macedonia into the 52nd place, trustworthiness and confidence of financial market is scored 4.5 (46th place).
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Macedonia are summarised in Table 1.
|Scheme Participants||all credit institutions operating in Macedonia (including branches of foreign banks), branches of Macedonian banks abroad|
|Eligible Depositors||natural persons|
|Covered Accounts||all deposit accounts|
|Maximum Protected Amount||30 000 EUR|
|Paid In Currency||MKD|
Table 1. Deposit guarantee scheme in Macedonia.
Deposit Guarantee Schemes in Europe
Currently there are 16 credit institutions operating in Macedonia.
All the credit institutions operating in Macedonia can be classified into several categories. Table 2 summarises the number of banks in each category.
|Category||Number of Banks|