FRANKFURT, Nov 20 (Reuters) - Macedonia's economy will contract this year, but resume growth next year, central bank governor Petar Goshev said on Friday.
"Macedonia was hit by crisis, but fortunately less than many comparable countries ... the economy will contract 1.5 percent this year," Goshev told Reuters on the sidelines of the European Banking Congress.
"Next year, we could have positive growth of 1 to 2 percent."
He also said the central bank preferred borrowing funds from the International Monetary Fund instead of going to capital markets.
"Our opinion would be to borrow from the IMF, but this is on the competence of the government."
He also said the central bank was comfortable with the present level of foreign reserves, which he said had increased for the last six months.
Goshev said the central bank would decide very soon whether there is room for cutting interest rates, and added an IMF loan could add room for a cut.
"For the time being, there is no reason for increase," he added.

(Reporting by Sakari Suoninen) Keywords: MACEDONIA/CENTRALBANK GOVERNOR (sakari.suoninen@reuters.com; +49 69 7565 1267; Reuters Messaging: sakari.suoninen.reuters.com@reuters.net)

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