CEB CREDIT LINE

     On November 25 th , 2005, the Macedonian Bank for Development Promotion (MBDP) and the Council of Europe Development Bank (CEB) concluded a Framework Cooperation Agreement under which CEB has approved a loan to MBDP in an amount of EUR 10,000.000 (ten million euros) for financing creation and maintaining of jobs in small and medium sized enterprises in the Republic of Macedonia . On October 18 th , 2006 MBDP has received the first tranche of the loan in an amount of EUR 5,000.000 (five million euros).
     The realization of this credit line is made through the participant banks as follows: Komercialna Bank AD Skopje, Stopanska Bank AD Bitola, and Ohridska Bank AD Ohrid. Credits to small and medium sized enterprises that have up to 250 employees are approved under the following conditions:

     •  Repayment period: up to 7 years including grace period of 2 years,
     •  Interest rate: variable,
     •  Repayment: quarterly,
     •  Amount: up to 400,000 EUR,
     •  Purpose: purchasing fixed assets.

     This credit line is expected to create about 950 new jobs. In the beginning of 2007, MBDP will withdraw the second tranche of the loan in an amount of EUR 5,000.000 (five million euros), and in its realization other participant banks will be also included.