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Luxembourg/Skopje, 07 September 2021

 

  • As one of the key financiers and long-term partners for the country, the EIB is strengthening its fruitful cooperation with the Development Bank of North Macedonia
  • By enabling SMEs to access the affordable finance, the EIB is supporting private sector development, employment and the resilience of the local banking system
  • The EIB has invested 550 million to support SMEs in North Macedonia through DBNM, out of which 100 million for faster recovery from the COVID-19 crisis

 

EIB Vice-President responsible for the Western Balkans, Lilyana Pavlova met with the Management Board of the Development Bank of North Macedonia, Kire Naumov and Faruk Ismaili, on the occasion of the First Annual Conference of the Ministry of Finance “Economic Recovery and Growth beyond COVID”. These two institutions have been fostering a decade-long collaboration aiming to support financing of SMEs in the country.

Recently, EIB and DBNM signed a loan agreement providing €100 million to be available under more favourable conditions, as immediate support for small and medium-sized enterprises (SMEs) and mid-caps. The scheme supports small businesses in North Macedonia that operate in labour-intensive sectors such as manufacturing, tourism and services, to recover quickly from the COVID-19 crisis. The EIB loan will help firms maintain business continuity and sustain jobs, while increasing productivity and expanding their activities. It is expected that the first tranche of the €100 million loan will be disbursed to the SMEs in the following month.

During the meeting, both parties expressed shared interest in exploring options for joining forces in the support of the private sector in the country through targeted financing and risk-sharing instruments, notably in the fields of energy efficiency and digitalisation.

Lilyana Pavlova, EIB Vice-President responsible for the Western Balkans, said: We are proud to continue working alongside our long standing partner – DBNM in supporting the development and resilience of the private sector and the banking industry in North Macedonia, amid the ongoing covid-19 crises. Following our successful cooperation, the EIB is looking forward to joining efforts in increasing resilience and competiveness of small and medium enterprises, through green and digital investments.

CEO of the Development Bank of North Macedonia Kire Naumov said: “The strategic and successful collaboration between the EIB and DBNM resulted in introducing financial support of the private sector in North Macedonia in the amount of €550 million. With the most recent loan of €100 million, we expect to provide financial support for at least 300 projects of SMEs in North Macedonia. DBNM is looking forward alongside the EIB, to provide even more targeted financial support to small and medium sized companies in the country.”


Background information

About the EIB:
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. www.eib.org

About the DBNM:
DBNM is the development bank of North Macedonia. It is established in 1998 with the Law on the Development Bank of North Macedonia and is 100% state owned.
The Bank provides financial support especially to export oriented SMEs in the country through loans, short-term credit insurance, factoring and guarantees. https://www.mbdp.com.mk/en/profile

About the EIB in North Macedonia:
The EU bank has been active in North Macedonia since 1977. To date, it has invested €1 billion, mostly for small and medium enterprises and the transportation sector. For more information regarding the EIB’s projects in North Macedonia, please refer to: https://www.eib.org/en/projects/regions/enlargement/the-western-balkans/north-macedonia/index.htm 

About the EIB in the Western Balkans:
The EIB is one of the leading international financiers in the Western Balkans. Since 2009, the Bank has financed projects totalling over €8.6 billion in the region. For detailed information on EIB activities in the Western Balkans, please visit the following website: www.eib.org/en/publications/the-eib-in-the-western-balkans

Press contacts: 

European Investment Bank
Gordana Kovačević, This email address is being protected from spambots. You need JavaScript enabled to view it., tel.: +381 60 3233435
Website: www.eib.org/press – Press Office: +352 4379 21000 – This email address is being protected from spambots. You need JavaScript enabled to view it. 

Development Bank of North Macedonia
Cabinet of the Management Board, This email address is being protected from spambots. You need JavaScript enabled to view it., tel: +389 2 3114 840
Website: www.mbdp.com.mk

                                                                                                                                
  The Call is financed by                                                                                                                                                                        Development Bank of
    the European Union                                                                                                                                                                        North Macedonia JCS Skopje


On the basis of the Law on the Macedonian Bank for Development Promotion (Official Gazette no.105/2009), the Agreement for Administration of micro and small sized enterprises no. 10-7500/2 dated 12.11.2020 and no. 15-8547/1 dated 17.11.2020, the Development Bank of North Macedonia JSC Skopje, announces the following:



PUBLIC CALL no.1
FUND FOR MICRO AND SMALL ENTERPRISES
for submitting a loan application for direct lending to
micro and small enterprises affected by Covid-19
(Kovid-3)

 

 

I. SUBJECT OF THE PUBLIC CALL
Subject of this Public Call is the submitting of a loan application from the Fund for small and medium sized enterprises for direct support to small and medium sized enterprises, sole proprietors, artisans that pay real income taxes and are registered in the Republic of North Macedonia.

The Fund for micro and small sized enterprises, of which this credit line will be realized, was established with funds through EU4Reilience IPA Programme of the European Union, which were made available to the Fund in an amount not exceeding EUR 30 million in Denar countervalue and Budget contribution in an amount of Denar 60 million.

II. APROVAL CONDITIONS
The funds of the Fund for direct lending to micro and small enterprises will be disbursed under the following conditions:

Loan purpose:
For fixed assets and working capital in order to continuously finance the current activities and the need for working capital, as well as to support the implementation of projects for purchasing fixed assets for the business implementation.

Loan amount:
The maximum loan amount approved to a beneficiary-enterprise may not exceed Denar 922,500.
The maximum loan amount per sole proprietor and artisan may not exceed Denar 307,500.
The minimum loan amount approved to a beneficiary of this credit line may not be less than Denar 184,500.

Loan disbursement:
The approved loan will be disbursed to the beneficiary directly, pursuant to the instructions stated in the Loan Application.

Repayment period:
Up to 3 (three) years with included grace period of 6 (six) months.

Approval criteria:
Eligible beneficiaries are as follows:

  1. Micro and small sized enterprises, sole proprietors, and artisans (that pay real income taxes) classified in accordance with the Current state;
  2. which do not have unpaid public duties and benefits, unless they have been granted deferred payment of taxes and benefits in accordance with special regulations in the field of taxes and pay them regularly, at least until 31.01.2020 or later;
  3. That no bankruptcy or liquidation proceedings have been instituted against them;
  4. Have submitted an annual financial account to the Central Registry of the Republic of North Macedonia;
  5. Pursuant to the financial statements of the last fiscal year have principal and reserves (stated in the balance sheet) not less than 33% of the requested loan amount;
    This criterion is not applicable to artisans and sole proprietors;
  6. According to the data from the credit registry of the National Bank of the Republic of North Macedonia as of 31.01.2020, fall in higher or equal to B classification (average risk calculation is performed) or have no liabilities towards banks;
  7. Beneficiary which according to the data from the credit registry of the National Bank of the Republic of North Macedonia is in the risk classification V - regular status with calculated impairment / special reserve in relation to the total exposure of banks to a certain client less than or equal to 29.9% as of 31.01.2020, only if the indicator for the level of financial indebtedness is less than 5.0, and it is calculated as the ratio between total liabilities on loans and credits/principal and reserves from the balance sheet. Exception is if the total credit exposure of the banks to a client is less than Denar 10,000;
    This criterion is not applicable to artisans and sole proprietors;
  8. Shows decline in income of at least 20% in any of the months from April to August 2020, (April, May, June, July and August) compared to the same month previous year - 2019;
    or
    shows decline in income of at least 20% in any of the months from April to August 2020 (April, May, June, July and August), compared to the average realized monthly income in 2019 (total income 2019/12 months).
    For this criterion, the Beneficiary gives a Statement under moral and criminal responsibility.

Interest rate to Beneficiaries
The interest rate to Beneficiaries is determined on a fixed basis in an amount of 0% p.a.  DBNM will not charge fee to Beneficiaries for processing of applications.

Collateral
The loan is secured with a bill of exchange from the Beneficiary guaranteed by one of the Beneficiary’s owners, and with a bill of exchange statement which regulates the rights and obligations upon the bill in a form of a notary act with enforcement clause.
The Beneficiary bears the costs for establishment of collateral.

Miscellaneous
DBNM on behalf and for the account of the Government of the Republic of North Macedonia upon approval of the loan application will enter into agreement with the Beneficiary.

III. ELIGIBLE ENTITIES
Right to submit loan application has micro and small enterprises, sole proprietors, and artisans which pay tax on real income and are registered in the Republic of North Macedonia in accordance with the current regulations and have a share capital privately owned by legal entities and natural persons of at least 51%.
The Beneficiary can check his size classification by inspecting his Current state (extract from the Central Registry).

IV. GRANT COMPONENT

If a loan was disbursed to the Beneficiary, than it can apply for grant component (debt relief) of 30% of the loan amount. In order to use the grant component, the Beneficiary acquires the right to apply for debt relief upon fulfillment of the following two conditions:

  1. The entity has repaid at least 50% of the liabilities related to the loan,
  2. Has no record of delay in fulfilling its obligations arising from the loan for more than 30 days.

The Beneficiary can apply for one of the following four categories of grant components:

Category 1:

  • at least 50% of the ownership structure includes woman/women or
  • is managed by a woman (woman manager)

Category 2:

  • at least 50% of the ownership structure consist of young persons up to 29 years old; or
  • it is managed by young persons up to 29 years (young manager);

Category 3:

  • The Beneficiary is an exporter with a share of foreign income of more than 50% in the financial statements for the last fiscal year.

Category 4:
The beneficiary implements projects related to:

  • Green economy;
  • Modernization and digitalization of business processes through procurement of equipment and/or introduction of a new way of selling (e-selling);
  • Introduction of new products and services.

In order to use the grant-component, the Beneficiary should apply to DBNM for debt relief.

 

Fulfillment of the criteria for using the grant component will be
assessed at the time of submission of the application for approval of
the grant component (debt relief) as follows:

Category 1:

  • when submitting the loan application according to the Current state of the enterprise; and
  • when submitting an application for approval of the grant component according to the Current state of the enterprise.

Category 2:

  • when submitting the loan application according to the Current state of the enterprise; and
  • when submitting an application for approval of the grant component, there are no changes in the ownership and/or management structure, according to the Current state of the enterprise.

Category 3:

  • when submitting the loan application according to the annual account and analytical card on account 121 receivables from foreign buyers; or
  • when submitting an application for approval of the grant component according to the annual account and analytical card on account 121 receivables from foreign

Category 4:

  • when submitting an application for approval of the grant component, the Beneficiary submits proof for implementation of projects/activities related to:
  • Green economy;
  • Modernization and digitalization of business processes through procurement of equipment and/or introduction of a new way of selling (e-selling);
  • Introduction of new products and services.

V. MANDATORY DOCUMENTS
Loan application from the Beneficiary is mandatory document without which the application will not be processed. It is posted on the Bank’s web site and it contains the basic information for the Beneficiary, requested loan amount, payment instructions, etc.

Mandatory documentation that the Beneficiary has to submit under the Public Call is as follows:

 

  1. Loan Application (posted on the Bank’s web site),
  2. Application for client registration (posted on the Bank’s web site),
  3. Proof that it does not have unpaid taxes and benefits to the state - Conformation from PRO (at least dated 31.01.2020 or later)
  4. ZP Form (certified signature form),
  5. Statement for connected persons/entities (posted on the Bank’s web site),
  6. Statement on PEP (posted on the Bank’s web site),
  7. Statement for verification of credit exposure (posted on the Bank’s web site),
  8. Analytical card on account 121 receivables from foreign buyers (only for Beneficiaries that will apply for debt relief for Category 3 – exporter)

Documents that the Beneficiary needs to submit or documents that if not submitted by the Beneficiary will be provided by the Bank ex officio

  1. Current state issued not later than 6 months,
  2. Annual financial statement (as of 31.12.2019),
  3. Proof that no bankruptcy or liquidation proceedings are instituted against it (from the Central Registry of the RNM).

 
VI. CRITERIA FOR DISBURSEMENT OF FUNDS 
Eligible Beneficiary that fulfills the loan approval criteria on “FIRST COME FIRST SERVED” basis.
Loan applications will be processed chronologically as they are received on the e-mail address: This email address is being protected from spambots. You need JavaScript enabled to view it. .

VII. SUBMISSION OF LOAN APPLICATION FORM
Loan application and all related documents are submitted only electronically at the following e-mail address: This email address is being protected from spambots. You need JavaScript enabled to view it..

Submitted loan applications are allocated automatically, due to which it is necessary to adhere to the following rules when applying:

  • In Subject one should write the company name, city and legal form in Latin letters, for ex: Vardar Berovo DOOEL
  • If the loan application is sent in several e-mails, the Subject in all e-mails should be the same, without additional signs such as: 1, 2, second part, covid3, kovid, etc.
  • Maximum size of Attachments should not exceed 8MB and should be attached as .pdf, .zip or .rar format.

Loan application is mandatory document and the related documents will not be processed if it is missing.

Loan application should be filled out completely.

The loan application and the accompanying documents which form is prescribed by the Bank is recommended to be filled out electronically, on a computer, or if that is not possible, to fill them out legibly in block letters.

Loan applications can be signed manually or with a digital certificate.

The loan applicant can submit only one loan application.

VIII. GENERAL PROVISIONS
Loan applications for the Public Call are going to be submitted within 15 days, starting on December 16, 2020 at 00:01 and ending on December 30, 2020 at 23:59.

The processing of the received loan applications will start after the closing of the Public Call.

Documents submitted to the Public Call are irreversible.

Inadequate loan applications of illegible Beneficiaries will not be considered.

Incomplete loan applications will not be considered until they are completed.

Documents received without a Loan Application (posted on the Bank's website) will not be processed until the Loan Application is submitted.

The Bank does not bear any costs incurred with preparing, compiling and submitting of the loan application, so that the participant in the Public Call is not entitled to reimbursement of any costs on the basis of participation in this Public Call.

The Bank will notify the loan applicants who have been granted a loan on the basis of a submitted loan application, via the e-mail address specified in the Current status of the entity.

The Bank will notify the loan applicants whose loan applications have been rejected, with the reason for rejection, via the e-mail address specified in the Current status of the entity.

The Bank will not notify the Beneficiaries individually, in case the loan application is received after exhaustion of the funds.

For the exhaustion of funds upon the Public Call, the Bank will make an announcement on its website.

Loan applications submitted for the Public Call Kovid 1 and Kovid 2 are not subject for consideration.

All information and forms related to the Public Call can be found at the Bank's website www.mbdp.com.mk.

 

DBNM, 02.12.2020 - On its 25th session yesterday, the Government adopted a decision to propose for adoption by the Parliament a Draft Law on modifications and amendments to the Law on Macedonian Bank for Development Promotion. The Draft Law outlines the state guarantee scheme as part of the economic measures for dealing with the effects of the COVID-19 pandemic.

The legal solution proposes amendment of the Development Bank of North Macedonia activities in order to implement projects and/or programmes of the Government by issuing guarantees from a Guarantee Fund. Funds in the amount of EUR 10 million from the Budget are initially provided for the Guarantee Fund.

The funds of the Guarantee Fund, as stipulated in the draft Law, will be used for issuing guarantees for securing payments on the basis of the principal amount of newly approved loans for working capital up to 80% of the loan amount, and loans for fixed assets up to 50% of the loan amount, in accordance with the good practices in European countries. Final Beneficiaries of the guarantees are micro, small and medium commercial entities, as well as large export-oriented companies which export income have a share of at least 30% of the total revenues in the previous fiscal year.

The Development Bank will announce information related to the operation of the Guarantee Fund on its website on a quarterly basis, whereas the Ministry of Finance will announce semiannual reports for the fiscal risks of the Guarantee Fund on its website.

The draft legal solution was submitted to ENER (National Electronic Regulations Registry of the Republic of North Macedonia) for public discussion before entering into government procedure. The adoption of the draft Law by the Parliament will create the legal framework for starting the state guarantee scheme.

DBNM, 14.04.2020 - The Government of the Republic of North Macedonia at its session held on April 18, 2020 adopted a decision that the Development Bank of North Macedonia JSC Skopje will be able to open a new, second interest-free credit line - "COVID2."

The Development Bank will publish a PUBLIC CALL during the next week and will inform the media about it, so the information reaches the wider audience

Stay in good health!

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