October 7 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said that it is providing a 5 million euro ($5.5 million) loan to Skopje-based ProCredit Bank for on-lending to small businesses in North Macedonia.
At least 60% of the EBRD funds for ProCredit Bank Macedonia will be earmarked for reducing energy and resource use and associated costs, helping local companies to align their operations with EU standards and requirements, the EBRD said in a statement on Friday.
The EBRD loan is backed by 750,000 euro in grants from the EU delivered under the Instrument for Pre-Accession Assistance (IPA).
ProCredit Bank Macedonia is the fourth bank in North Macedonia to join the initiative led by the EBRD to boost on-lending to privately owned small and medium-sized enterprises (SMEs).
Financing packages under the same programme were extended in 2018 to Sparkasse Bank Makedonija, Ohridska Banka [MSE:OHB] and Komercijalna Banka [MSE:KMB].
In total, the Western Balkans SME Competitiveness Support Program aims to provide at least 30 million euro in loans to North Macedonia-based commercial banks over the coming year, with the EU contributing a further 6 million euro in the following years.
The current programme builds on an earlier 20 million euro competitiveness support facility, which was in place between 2010 and 2015, which was also supported by the EU with 4 million euro.
($ = 0.9112 euro)