The European Bank for Reconstruction and Development (EBRD) said on March 30 it provided up to €2.5mn to North Macedonia’s Komercijalna Banka for on-lending to small and medium-sized enterprises (SMEs).

Komercijalna Banka is the largest bank in North Macedonia in terms of assets. The bank previously received a €5mn loan under the EBRD Western Balkans SME Competitiveness Programme in 2018.

The new loan is aimed at financing the SMEs to invest in production facilities and to comply with EU directives in the fields of environmental protection, workers’ safety and product quality and safety, the EBRD said in the statement.

Additionally, the EBRD will provide technical assistance and know-how for project preparation and implementation for the SMEs, as well as grant incentives worth up to 15% of the total loan amount on successful project completion.

“The new funding will facilitate access to much-needed finance for small businesses, which is key for economic recovery in these challenging times. It will also make these businesses more competitive and resilient and allow them to integrate better into the regional and European value chains,” Andi Aranitasi, EBRD head of North Macedonia, said.

To date, the EBRD invested €2bn through 140 projects in North Macedonia. The lender focuses on the expansion of the local private sector, the promotion of regional and international integration and the sustainable use of resources in the country.