Skopje, 15 September 2023 (EIB/MIA) - EIB Global, the branch of the European Investment Bank for activities outside the European Union, will provide a €1 million technical assistance grant to its longstanding partner, the Development Bank of North Macedonia (DBNM). These funds will facilitate the implementation of climate and environmental sustainability financing under a €100 million credit line that the EIB signed in July this year. By supporting the country’s banking sector to build green finance capacity and small and medium enterprises (SMEs) to identify and develop green projects, this technical support will contribute to private sector growth and competitiveness and the green transition of the local economy.

Through this technical assistance, commercial banks and small businesses will receive training and advisory support for promoting and developing bankable projects in areas such as energy efficiency and renewable energy.

EIB Vice-President Lilyana Pavlova, who is responsible for operations in North Macedonia, said: “Increasing access to affordable capital will enable small businesses to expand their businesses even in times of crisis. Together with the government and DBNM we aim to create new investment and employment opportunities, while accelerating the green transition and decarbonisation of local businesses. The grant we signed today will help our partners and beneficiaries to develop green finance capacity and green projects, hence contributing to climate resilience in North Macedonia — critical for economic growth and stability.”

Minister of Finance Fatmir Besimi expressed his gratitude for the existing successful cooperation with the European Investment Bank, by which six credit lines totalling €550 million have already been disbursed, thus providing support for over 2 000 small and medium-sized businesses.

“In order to overcome the challenges posed by the global energy and economic crisis which has directly affected the operations of small and medium-sized businesses, the Government of the Republic of North Macedonia adopted measures to stimulate small and medium-sized businesses’ activity by implementing methods to encourage the production process, ensure companies’ liquidity, preserve jobs and maintain the competitive position of the companies. Thereby, given the experience acquired and the successful cooperation with the EIB, and for the purpose of fully meeting the needs of small and medium-sized businesses affected by the crisis, a new seventh EIB credit line of €100 million was provided. As a result of the multiplying effect, €200 million will be made available to the companies concerned under favourable terms and conditions, in order to preserve their liquidity and make new green investments, in particular”, said Minister Besimi.

The grant comes as a result of the fruitful cooperation between DBNM and EIB Global, which has enabled the allocation of €550 million to date for the support of over 2 300 local companies. Since 2019 alone, EIB Global has provided €212 million of EU investment to North Macedonian companies through this partnership model, sustaining 46 000 jobs and creating 1 815 new positions.

Chief Executive Officer of the Development Bank of North Macedonia Kire Naumov said: “This additional cooperation between the EIB and DBNM comes as a continuation of our latest financial agreement signed in July this year, providing our local economy with a newly approved €100 million in financial support, funds intended to boost the green energy transition in line with the EU Green Agenda for Western Balkans. DBNM continues to play an active role in the financing of responsible, sustainable green projects; and with this latest €1 million grant agreement we are firmly embracing the facilitation of training and advisory support for our local small businesses to stay on the EU green agenda path. Our mutual focus remains on renewable energy, economic growth and social responsibility in corporate lending.”

EU Ambassador to North Macedonia David Geer remarked: “The EIB green credit line is yet another example of how — as Team Europe — the European Union is continuing to support small and medium sized companies through the development of investments in a green, low-carbon economy in North Macedonia. Thanks to a grant in the form of technical assistance, the capacities of the Development Bank of North Macedonia and of local commercial banks to promote green investments will be strengthened. By doing so, the European Union, through the EIB, is not only helping to advance the green transition in the country, but it will also increase the competitiveness of local companies.”

The Bank is looking to mobilise further investments for the private sector under the latest EU guarantee facilities granted under the Neighbourhood, Development and International Cooperation Instrument — Global Europe (NDICI – Global Europe) to encourage green investments, innovation and digital transition in the region.

Photo: EIB