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Second tranche of SME credit line for FYR Macedonia
The European Bank for Reconstruction and Development (EBRD) is increasing a US$ 30 million credit line for small and medium-sized enterprises (SMEs) in the Former Yugoslav Republic (FYR) of Macedonia. The second tranche of DM 10 million (ECU 5.2 million) will be extended to one new bank, Export and Credit Bank, as well as to two other banks, Stopanska Banka and Export-Import Banka, which are already participating in the SME programme.
"The first tranche, extended in December 1995, is being implemented successfully, with over 60 per cent disbursed and more than 30 projects financed. The loans support the development of SMEs in FYR Macedonia as well as the development of growing and profitable private financial institutions. The project meets SME requirements for term funding which is in short supply," said Olivier Descamps, Director of the EBRD's FYR Macedonia team.
Under the second tranche, Export and Credit Bank will benefit from DM 3 million, Stopanska Banka from DM 5 million and Export-Import Banka from DM 2 million. The state of FYR Macedonia is providing a guarantee for this operation.
Loans are provided in foreign currency for investment and working capital purposes, with a small portion for acquiring shares of SMEs in the process of being privatised. The credit line will also increase the participating banks' lending capacity and operations and will strengthen their credit risk assessment capabilities.
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