Development Bank of North Macedonia JSC Skopje

Производи

Lending to Municipalities in Republic of North Macedonia

– realization of projects from the Instrument for Pre-accession Assistance-IPA component  for cross-border cooperation

 
Providing finance to Municipalities in the Republic of North Macedonia for realization of projects from the Instrument for Pre-accession Assistance-IPA component

 

Final Borrower
Final borrowers are municipalities of the Republic of North Macedonia which have signed the Agreement for implementation of projects from the IPA component for cross-border cooperation.

Purpose
Providing finance for construction works of small size and reconstruction, renovation and establishing communication networks, purchasing IT equipment, purchasing specialized equipment and for other purposes in compliance with the Guidelines for Applicants for the IPA Cross border Programme.

General Terms and Conditions

 

Loan amount:

Maximum amount:
up to 300.000 EUR (denar counter value)

Minimum amount:
10.000 EUR (denar counter value)
Interest rate: 5.75%  p.a
Fee: None
Loan term: Up to 2 years with grace period of maximum 6 months included
Repayment: Quarterly

 

 Eligible municipalities:
  1. Municipalities which have obtained consent for borrowing funds;
  2. Municipalities which have signed an Agreement for implementation
    of a concrete project from the IPA component;
  3. Municipalities which have obtained decision from the Municipality Council
    for a particular borrowing;
  4. Municipalities which applied for realization of projects which are in
    compliance with the ecological regulations;
  5. Municipalities whose maximum project amount does not exceed EUR 500.000.

Collateral:
  1. Bill of exchange with a clause on presentment for acceptance
  2. Other instruments

 General procedure on credit approval

  1. The municipality shall submit to DBNM a filled out form: Loan application for providing finance to municipalities for realization of projects from the IPA component, available on the DBNM website, together with the supporting documents and other forms which form ingredient part of the application;
  2. DBNM shall process the loan application considering the technical and essential aspect and shall make a decision;
  3. Once a loan is approved, an Agreement shall be concluded upon which the loan funds shall be disbursed.

Minimum documents required

  1. Filled out  Loan application for providing finance to municipalities for realization of projects from the IPA component
  2. Consent by Ministry of Finance of RNM for borrowing funds
  3. Company information obtained from the Central Registry
  4. Application for registration of a client
  5. Agreement on implementation of a project from the IPA component for cross border cooperation
  6. Decision of the municipality Council for a particular borrowing  and for issuing a bill of exchange with an enforcement clause as collateral
  7. Statement and/or evidence for the percentage of payments made out of the loan funds for goods and services from legal entities in the Republic of North Macedonia
  8. Statement that the project complies with the environmental regulations
  9. Financial statements/budget in the last three years
  10. Statement on related persons/entities
  11. Statement on holders of public function

Aplication forms