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Leading FYR Macedonian bank to boost capacity and increase efficiency with EBRD investment
The leading private bank in the FYR Macedonia, Komercijalna Banka a.d.(KB), is to extend its term lending operations to private and privatising companies following a DM 15 million (ECU 8.1 million) investment and loan package from the European Bank for Reconstruction and Development (EBRD).
Jacques de Larosière, EBRD President, said: "As FYR Macedonia's strongest bank, KB is expected to play a key role in advancing the transition process in the country. It is the EBRD's intention to help the bank increase the range of products available to private sector clients given the impending privatisation and restructuring process."
KB is a commercial and savings bank, providing loans, guarantees and deposit facilities in local and foreign currencies to the corporate sector, and a complete range of domestic and international banking services to corporate and retail clients. The loan proceeds will fund medium- and long-term investment projects including working capital, purchase of shares in the privatisation process, and export and pre-export trade financing.
The EBRD is investing approximately DM 4 million (ECU 2.2 million) in KB, becoming its second-largest shareholder, and providing a convertible loan of approximately DM 11 million (ECU 5.9 million). The EBRD will have direct representation on KB's Board. An amount of ECU 450,000 will be invested for technical assistance, of which KB will pay half to strengthen KB's skills and technical expertise in such areas as credit, treasury, budgeting and information technology.
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