Internal unpaid liabilities of state institutions approach €700 million
By end‑June 903 institutions reported unpaid invoices; six‑month increase €26.4 million, €17.5 million added in Q2.
State institutions in North Macedonia reported nearly €700 million in internal unpaid liabilities by the end of June, with 903 institutions listing overdue invoices, official summaries show. Over the first six months the stock of unpaid obligations rose by €26.4 million, including €17.5 million added in the second quarter and almost €3 million compared with the same period a year earlier.
The outstanding claims are split between public and private creditors: other public institutions are owed €344.5 million, while private firms and organisations are owed €315.2 million. Municipalities account for €93.2 million of the total — an increase of €28.5 million year‑on‑year.
Former mayor of Veles, Ace Kocevski, warned that municipalities continue to take on new debt and in some cases fail to collect revenues they are legally required to raise themselves.
The single largest individual debtors are the Ministry of Infrastructure and the Ministry of Transport; significant liabilities are also recorded at the ESM companies and public health institutions.
Policy view and proposals
Think‑tank Finance Think described overdue but unpaid obligations as a weak link in fiscal discipline and noted that the overall level has changed little since last June. The institute recommends that these liabilities be included in public debt and deficit calculations and recorded as soon as they occur.
Finance Think also proposed concrete measures: "Introduce accountability systems, bonuses and other incentives for more efficient management of public enterprises and timely payment of obligations. Use structural bonds and other instruments for financial stabilization in municipalities with significant overdue liabilities. Introduce strict sanctions for responsible persons in budget institutions who take on obligations beyond approved budget projections or without secured sources of financing."
The Ministry of Finance publishes the status of overdue obligations every three months; the next snapshot at the end of September should show whether institutions have started to reduce the stock and how much of the unpaid liabilities has been settled in the meantime.
Photo: press material from the event
