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EBRD supports SMEs in FYR Macedonia
TTK bank to use €5 million loan to finance local entrepreneurs
The EBRD is lending TTK Bank AD Skopje, a medium-sized bank in FYR Macedonia,
€5 million to finance more small and medium-sized enterprises across the
country.
One of the biggest constraints for SMEs in FYR Macedonia and other central and
eastern European countries is the lack of access to longer-term financing. The
loan will help overcome that obstacle by enabling TTK to on-lend up to
€125,000 to entrepreneurs wishing to create or expand existing businesses.
Jean-Marc Peterschmitt, EBRD Director for Bank Relationships, said the loan is
important for helping develop the banking sector in FYR Macedonia, and at the
same time help finance more SMEs to strengthen the private sector, and promote
economic growth in the country.
The loan falls under the Western Balkans SME Finance Facility, a €50 million
framework approved by the EBRD to finance local SMEs in Albania, Bosnia and
Herzegovina, FYR Macedonia, Kosovo, Serbia and Montenegro. The Italian
government will provide technical cooperation funds to help finance a team of
consultants, which will train TTK’s employees in up-to date SME lending
technologies.
The Italian government is strongly committed to supporting economic growth in
the western Balkans, in particular in FYR Macedonia, and the EBRD, with its
expertise of the region and the tools it uses for providing finance, is an
ideal partner in supporting that process, said Roberto Rizzo, Charge
d’Affaires at the Italian Embassy in FYR Macedonia.
Established in July 2006 following the merger of two smaller banks –
Teteks-Kreditna Banka AD Skopje, and Tetovska Banka AD Tetovo – TTK is based
in FYR Macedonia’s capital city Skopje. While the bank operates in 6 locations
in Skopje and 16 in another 11 cities throughout the country, the Tetovo
region in North West of FYR Macedonia remains TTK’s stronghold. The bank’s
largest shareholder is Teteks, a textile firm from Tetovo.
Earlier this year, the EBRD acquired 25 per cent in TTK to support its
restructuring and growth plans. Part of the restructuring process includes the
implementation of an Institutional Building Plan (IBP) that will help develop
TTK into a modern, efficient institution. The IBP will particularly help raise
corporate governance standards to international levels and strengthen control
processes and risk management procedures. The IBP will be financed through
technical cooperation funds from the Norwegian Ministry of Foreign Affairs.
Atanas Spiroski, First General Manager of TTK Bank said that following the
signing of the Subscription and the Shareholders’ Agreements for the EBRD
equity investment in TTK, the management is very happy to continue the
cooperation with EBRD by signing of the loan agreement. The SME loan will help
TTK to support the SME sector in Macedonia, which is a vital part of our
strategy, Mr Spiroski added.
The EBRD is one of the largest investors in FYR Macedonia, having committed
more than €409 million in 26 projects.
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