Skopje, 22.12.2021

Development Bank of North Macedonia has disbursed today the second tranche in an amount of EUR 42.2 million from the European Investment Bank loan. The funds are intended for financing small and medium-sized companies and this tranche will provide support to 132 projects of domestic small, medium and mid-cap companies that will create 373 new jobs.

Most of the funds from the tranche are earmarked for the companies in the trade and production segment (16.4 million euros). The companies use the funds from the credit line through their commercial banks, for financing working capital with interest rate up to 1.6%.

The total amount of 59 million euros, from the both tranches, was disbursed for 182 companies which are expected to create new 463 jobs.

This loan, which agreement was concluded in 2021 between the DBNM and EIB, provided 100 million euros on favorable terms, such as direct support to small, medium-sized and mid-cap companies. The loan supports domestic companies from labor-intensive industries such as production, tourism and services, for fast recovery from the COVID-19 crisis. The EIB loan will help companies ensure business continuity and job retention, while at the same time increasing their productivity and expanding their business.

Skopje, 01.12.2021

As of 19.11.2021, the current members of the Managing Board of the Development Bank of North Macedonia AD Skopje have been reappointed for the same positions with a term of 6 (six) years.

The National Bank of the Republic of North Macedonia issued a decision with preliminary consent for the reappointment of Kire Naumov as Chief Executive Officer and Faruk Ismaili as Chief Operating Officer of the Development Bank of North Macedonia. The members of the Managing Board had already received the confidence for a mandate from the members of the Supervisory Board of the bank, in accordance with the Law on Banks.

The members of the Managing Board of the Development Bank began their mandates in November and December 2019 and managed the state-owned bank for the past two years. The Development Bank actively participated in the implementation of economic sets of measures adopted by the Government to deal with the negative effects caused by the COVID-19 pandemic.

In 2020 and 2021, the Development Bank extended loans to the private sector in the total amount of EUR 132 million, of which EUR 45 million in the form of interest-free loans. During this period of two years, the Development Bank signed the sixth financial agreement with the EIB for 2021/2022 in the total amount of EUR 100 million. By improving the terms and conditions in credit insurance and factoring, the volume of insured and purchased receivables in factoring increased significantly. As of September 2021, the volume increased by 73% and 20% respectively, compared to 2019.

The further capitalization of the bank made in 2020, was of particular importance. It enabled a direct expansion of the bank's product portfolio so that now the Development Bank can offer a customs guarantee to export companies. Recently, through a change of the Law on Development Bank of North Macedonia, a Guarantee Fund was organized within the bank, which established the state credit-guarantee scheme that benefits micro, small, medium companies, as well as large export companies.

The goal of the Managing Board is to continue to develop the state-owned bank as a dynamic, financially strong institution specialized in financial support to small and medium enterprises and wider export support.

Skopje, 26.11.2021

Development Bank of North Macedonia has disbursed today the first tranche in an amount of EUR 16.9 million from the European Investment Bank loan. The funds will provide support to 50 projects of domestic small, medium and mid-cap companies that are expected to create 90 new jobs.

Мost of the funds from the tranche (EUR 12.8 million) are earmarked for the companies in the trade and production segment. The companies use the funds from the credit line through their commercial banks, for financing working capital with interest rate up to 1.6%.

The DBNM loan from the EIB, which agreement was concluded in 2021, provided 100 million euros on favorable terms such as direct support to small, medium-sized and mid-cap companies. The loan supports domestic companies in North Macedonia from labor-intensive industries such as production, tourism and services, for rapid recovery from the COVID-19 crisis. The EIB loan will help companies ensure business continuity and retain jobs, while at the same time increasing their productivity and expanding their business.

Skopje, 23.10.2021

Representatives of the Development Bank of North Macedonia took part in the Annual General Meeting of the International Union of Credit and Investment Insurers - Berne Union, organized by the Hungarian Export Credit Agency, EXIM Hungary. The AGM was attended by over 160 representatives of insurers from 52 Berne Union Member Organizations.

AGM participants discussed the business trends, policy and the ongoing response to the COVID-19 pandemic. In the first half of 2021, the Berne Union reports that short-term credit insurance is returning to the focus of companies, driven by high commodity prices and strong business confidence. Berne Union Members issued credit limits for short-term credit insurance worth 1.8 trillion US dollars as of the first half of the year, which is an increase of 7% over the same period last year and exceeds pre-pandemic levels in 2019 by 3%. The growth of short-term credit insurance is most prominent in developed economies and is in line with the increasing trends in international trade in goods.

Faruk Ismaili, Chief Operating Officer and Darko Stefanovski, Director of Credit Insurance Division
at the Berne Union Annual General Meeting 

In line with this are the results of insured receivables from the Development Bank in the first half of the year, where the insured receivables are in the amount of 98 million, which is 3.4 times more than the same period in 2020, for buyers in 33 different countries.

Improved economic prospects and low levels of claims so far, despite the gradual reduction of governments’ support both for the industry and the wider economy, provide higher appetites for risk-taking by insurers. The members of the Berne Union in the first half of 2021 paid 1 billion US dollars in claims for short-term insurance policies, 38% lower than in the previous half year period and overall resulting in the lowest short term claims/commitments ratio for any period in Berne Union records.

Despite the overwhelmingly positive conditions and the current stability, the mood of underwriters is predominantly cautious optimism due to the significant uncertainty in the next 12-month period.

The Development Bank of North Macedonia expects to end the year with a record level of insured receivables on the domestic and foreign markets, which adds a positive impact on the export component in the economy.