Macedonia is very likely to ask the IMF for a bailout loan from the International Monetary Fund over the effects of the economic crisis.

This becomes clear from an article in the Macedonian newspaper "Dnevnik" on Thursday, which points out that any moment the country's government might have to resort to aid from the IMF in order to save Macedonia from an economic collapse.

It points out that most economists believe that the dangerously growing current account deficit could best be tackled by an IMF loan rather than by loans from domestic and foreign commercial banks, and that the question was not whether Macedonia should ask the IMF for help but when it was going to do that.

Dnevnik stresses that the IMF Representative for Macedonia has reminded the country's government that the Fund was open to considering its potential loan requests.

He has also reminded that the country's reserves had dropped by EUR 400 M in the last eight months. The money transfers by Macedonians living abroad have also declined by 10% in 2008 compared to 2007, and the foreign direct investments in Macedonia have also decreased from 4% of the GDP down to 2,5% of the GDP in only six months.

The article reminds that "the richer are already in debt", i.e. that other Eastern European states including EU members have already resorted to IMF bailout loans - Hungary has received EUR 15,7 B, Romania - EUR 20 B, Serbia - EUR 3 B, Bosnia and Herzegovina has asked for EUR 1 B, the Ukraine, Belarus, Iceland, Turkey, and Latvia have also received IMF credits, and Montenegro is also expected to follow suit.

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