Skopje, 14 December 2023 (MIA) - The Ministry of Finance has secured EUR 90 million from the KfW Development Bank as support to budgetary policies, aimed at management of the crisis challenges. Finance Minister Fatmir Besimi and KfW country director Moritz Remé signed the loan agreement on Thursday.

"The loan aims to support the Government in the management of the crisis effects, improve its situation in the foreign finance field, as well as implement structural reforms. These funds, secured under favorable conditions, will help the country bridge the crisis and support the citizens and the economy in its recovery," said Minister Besimi.

He thanked KfW for the approval of the funds, saying the decision reaffirms the Government's commitment to restructure and decarbonize the domestic energy sector and ensure safe and stable electricity supply for households and companies.

"We are continuing to implement policies focused on rising national output, diversification of energy sources, decarbonization of the domestic energy sector through investments in renewables, and environment protection," noted Besimi.

The FinMin added that the objective of the loan is to support North Macedonia in its efforts for energy transition and achievement of the Paris Agreement goal to reduce greenhouse gas emissions by 82 percent compared to the 1990s levels.

"In the framework of the Berlin Process and the Climate Partnership with the Western Balkans, KfW has supported North Macedonia in its efforts to make its energy capacities greener and increase energy efficiency. KfW is funding wind parks, photovoltaic power stations, sustainable central heating systems, rehabilitation of large hydropower plants and modernization of student dormitories. KfW's portfolio in the country's energy sector stands at EUR 227 million, with further EUR 210 million for investment projects in the pipeline," said Remé.

The KfW loan is part of a broader package that the Government has secured for the crisis management, also including EUR 100 million from the EU, as well as EUR 50 million from the World Bank, the Ministry of Finance said in a press release.

Photo: Ministry of Finance