Skopje, 27 July 2023 (MIA) - The European Investment Bank (EIB) will offer support for implementing a "greening" strategy for the financial system, announced National Bank Governor Anita Angelovska-Bezhoska and EIB representative, Björn Gabriel.

"The EIB appreciates the activities undertaken by the National Bank in the last few years in the sphere of green finance and is prepared to offer its support for the activities planned in 2023-2025. Considering the significance of the risks stemming from climate change within the global framework, including the financial systems, from 2020 the "green" sustainable economy became a strategic goal for the National Bank. In 2021, the National Bank became a member of the Network for Greening the Financial System (NGFS), which includes central banks and financial regulators, and in 2022 a survey was conducted for the first time to assess awareness of the risks and how they are managed by the banking system. The National Bank is in the final phase of drafting the three-year strategy for encouraging green finance," the National Bank announced in a press release.

The Governor pointed out that the National Bank's strategy for encouraging green finance will affect several segments, including financial stability, banking regulations and supervision, monetary policies, research, financial markets, and further development of the organizational culture and capacities within the Bank. Some of the more significant actions within the strategy's framework are preparation of guidelines for the operation of banks in the domain of climate risk management, as well as stress-testing to assess the resistance of the banking system for climate change.

EIB representative, Björn Gabriel, positively evaluated the National Bank's activities so far and expressed readiness to support the implementation of the strategy through EIB's program "Greening Financial Systems."

"The support will be aimed at strengthening capacities for assessing the influence of climate risks on the stability of the banking system, the measures for protection, developing policies, regulation framework, and appropriate instruments for managing the risks. The forms and methods of support between the EIB and the employees working in this area, were discussed in more detail at the workshop organized by the National Bank," the press release reads.

The National Bank's prior commitments to the growth of green financing has resulted in significant progress.

"Namely, since the beginning of the data collection on green loans in North Macedonia (at the end of 2019), as of the first quarter of 2023, the total sum of green loans issued has doubled. During this time, the "green loans" or loans for financing renewable energy, energy efficiency, sustainable agriculture and technological innovations, has increased and now accounts for 3.7 percent of total loans. The National Bank support green financing through a series of measures, including changes in the reserve requirement instrument," adds the press release. ssh/sk/

Photo: National Bank