SKOPJE, North Macedonia, June 21 (SeeNews) – The European Investment Bank (EIB) is providing € 100 million ($ 118.9 million) to the state-owned Development Bank of North Macedonia for loans to local small and medium-sized enterprises (SMEs). and mid-cap to fund their post-pandemic recovery, the EIB said Monday.
Loans will be provided to small businesses in labor-intensive industries such as manufacturing and services to finance both working capital and long-term investments, the EIB said in a statement.
The North Macedonia Development Bank expects to provide financial support for at least 300 local projects with the receipt of financing, said in a statement by CEO Kire Naumov.
The loans will be provided to companies with maturities of up to 12 years, including a two-year grace period, and on favorable terms, the North Macedonian Finance Ministry said in a separate statement.
According to the Ministry of Finance, the interest rate on the first tranches will be 1.6%.
The EIB funding is part of a € 1.7 billion financial package for Team Europe’s initiative to help the Western Balkans recover from COVID-19.
Since 1977, the EIB has invested 1 billion euros in North Macedonia.
($ = 0.8413 euros)