EBRD’s first local currency financing in FYR Macedonia

By EBRD  Press Office

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The EBRD is increasing the availability of financing to private businesses in FYR Macedonia with a local currency loan equivalent to €5 million to ProCredit Bank Macedonia for on-lending to micro, small and medium-sized enterprises (MSMEs).

the loan is extended under the EBRD-Italy Local Enterprise Facility and will help ProCredit Bank Macedonia to diversify its funding base and maintain the access to credit for Macedonian MSMEs in the current challenging environment.

The proceeds of the loan will be used to finance investments and working capital of local businesses in rural and urban areas with long-term loans in Macedonian Denars. The local currency facility will support further development of Macedonian MSMEs and help them avoid foreign exchange risk.

“This transaction is the EBRD’s first loan in Macedonian Denars in the country. It will reduce the foreign exchange risk for ProCredit Bank Macedonia’s clients and encourage other commercial lenders to continue to provide financial access to local businesses in local currency. We are pleased to support ProCredit Bank Macedonia and its strategy to further expand lending to local private companies”, said Henry Russell, Director, Western Balkans, Croatia, Belarus and Moldova, EBRD Financial Institutions Team.

“In line with the strategic mission of ProCredit Bank to support the development of very small, small and medium enterprises as vital contributors to the Macedonian economy, we will be able to devote even more funds in lending to support the business growth of our clients. By placing more funding into the real economy sector in Macedonia we will contribute to boosting economic activity in the country”, expressed Jovanka Joleska Popovska, General Manager of ProCredit Bank, Macedonia.

To date the EBRD has invested close to €950 million in the Macedonian economy through projects in the corporate, financial, infrastructure and energy sectors. The EBRD funds have attracted additional investments worth €1 billion from other sources.

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