Provision of a senior loan of up to €20 million in one tranche under the Resilience Framework in favour of Sparkasse Bank Makedonija (SBM).
This project was approved in the context of the Bank's response to the Covid-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.
The proceeds of the Bank's investment will be used for sub-lending to eligible sub-borrowers affected by the Covid-19 crisis, in accordance with the RF policy statement.
ETI score: 70
Transition impact is expected to derive from the project's contribution to ensure resilience and preserve competition in the financial sector in North Macedonia.
Primary quality - Resilient: The facility will help SBM to remain an active and effective market player amid Covid-19 pandemic.
Secondary quality - Competitive: The facility will enable SBM to continue commercial lending in line with comparable sector participants.
SPARKASSE BANK MACEDONIJA AD
Sparkasse Bank Makedonija ("SBM") is a universal commercial bank and the 7th largest bank in the country with a 4 per cent market share by total assets. SBM is fully-owned by Steiermarkische Bank und Sparkassen AG, Austria ("STSP"). STSP has recently acquired its second bank on the Macedonian market - Ohridska Banka (OB) from SocGen. (5th largest in the country with around 8 per cent market share). SBM and OB will be merged in 2021, after which the new bank will be the 4th largest in the local market with 12-13 per cent market share. Both OB and SBM are the EBRD's long-term clients and regular participants in almost all the EBRD's facilities.Existing exposure to both banks is € 41.8m, (SBM -€ 19.3m + OB i € 21.5m+ Sparkasse Leasing i € 1.0m) and fully consists of credit lines (WeBSEFF II, GEFF, CSP and Women in Business).
EBRD Finance Summary
Total Project Cost
RF is the only financial package dedicated specifically to crisis response on the Macedonian market. It will allow SBM to answer the liquidity needs of its clients that are experiencing a decrease in activity, turnover and profitability.
Environmental and Social Summary
Categorised FI (ESP 2019). SBM is an existing client and its performance to date for existing exposures has been satisfactory. The AESR for 2019 will need to be reviewed by ESD prior to signing to confirm compliance. SBM will be required to continue to comply with PRs 2, 4 and 9, implement the EBRD's E&S Risk Management Procedures for Corporate, SME and Micro Loans including adherence to the expanded the EBRD E&S Exclusion List and Referral List introduced with ESP 2019 and submit annual E&S reports to the Bank. Sub-borrowers financed through SBM's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.
Technical Cooperation and Grant Financing
No TC is foreseen with this project.
Company Contact Information
Nina Mojsova Kjoseva
+389 2 3200 516
+389 2 3200 515
Makedonija Street 9-11, 1000 Skopje
PSD last updated
07 Dec 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
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