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EBRD affirms support to FYR Macedonia
Bank publishes new country strategy
The European Bank for Reconstruction and Development re-affirmed its commitment to support the Former Yugoslav Republic of Macedonia but cautioned that a difficult investment climate remains a serious obstacle for future investments, hurting long-term growth. In a new country strategy published today on the Bank's website - www.ebrd.com - the EBRD urges long term political stability, a sustained commitment to reform and improved public governance.
The EBRD remains the largest investor in FYR Macedonia. With 17 projects, the Bank has committed more than
€301.7 million and mobilised a further €368 million in co-investment and support from donors. Most recently, last month, the Bank agreed to lend €11.2 million to support the upgrade of the country's air navigation services, rehabilitate the runway at Ohrid airport and encourage the establishment of a commercially operated air navigation service provider.
In the new strategy paper, the EBRD says it will continue to focus on small and medium-sized enterprises, infrastructure and the financial sector. The EBRD will support SMEs, particularly export-oriented businesses, through credit lines, direct loans or equity investments, and the establishment of a dedicated micro-credit bank. In the financial sector, the EBRD will remain an active equity investor in banks, prepared to support the consolidation of the banking industry. It will also explore ways in which it can help develop the pension and leasing sectors.
The EBRD will dedicate special efforts to develop infrastructure projects in the electricity sector, including a contribution to the privatisation of the power utility company and the financing of a new regional power transmission line. The EBRD is also pledging support for the transport sector with a regional road project. The EBRD says it hopes to work closely with the new government following elections in September and will continue to actively co-operate with other international financial institutions and bilateral donors in the region.
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