Climate Change

North Macedonia secures EUR 100 million for green transformation of SMEs

North Macedonia secures EUR 100 million for green transformation of SMEs EIB loan

Photo: Dimitris Vetsikas from Pixabay

Published

July 17, 2023

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Published:

July 17, 2023

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The Development Bank of North Macedonia (DBNM) and local commercial banks will receive EUR 100 million from EIB Global, the arm of the European Investment Bank for activities outside the European Union.

The financing package will address the liquidity and investment needs of small and medium-sized enterprises (SMEs) and finance energy and green transition projects, the banks said.

The investments will support low-carbon and climate-resilient growth in North Macedonia, in line with the European Union’s Economic and Investment Plan and the Green Agenda for the Western Balkans, according to the statement.

Minister of Finance Fatmir Besimi said the funds would give companies a boost amid the challenges posed by the energy crisis and promote the country’s energy transition plan.

Besimi: The support was secured for companies’ liquidity needs, investments in renewables

“Fresh capital of EUR 100 million will be injected into the national economy, extending support for companies’ liquidity needs and investments in renewables and thus providing operational stability and a stable supply of electricity from their own resources,” he stressed.

According to the EU’s Ambassador to North Macedonia David Geer, the credit line will support private sector investments in energy efficiency, renewable energy sources and the circular economy. It will provide opportunities for the economic development of North Macedonia while contributing to a sustainable, net zero carbon future, he added.

The funds are part of the measures adopted by the Government of North Macedonia in 2022

The funds are part of the measures adopted by the Government of North Macedonia in 2022 to support households and businesses amid the economic slowdown and the energy crisis. Additional technical assistance will be signed in the coming months to support the DBNM, local commercial banks, and Macedonian companies in achieving their green finance ambitions, the announcement revealed.

EIB Vice-President Lilyana Pavlova, responsible for operations in North Macedonia, said improved access to finance for small and medium businesses and a stable banking sector are priorities to achieve economic growth, job creation, and greater competitiveness.

According to DBNM’s CEO Kire Naumov, the seventh cooperation agreement with the EIB enabled the domestic development lender to continue supporting small and medium businesses and green financing.

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