EBRD lends €9 million to ProCredit Bank in North Macedonia

• Loan of €2 million under the YiB programme supported by Sweden, Italy, and Luxembourg
• A further €7 million loan under the EBRD’s Green Finance Facility for SMEs
• GFF supported by Joint SDG Fund and North Macedonia under umbrella of the UNDP

The European Bank for Reconstruction and Development (EBRD) is pledging new funds to support young entrepreneurs and grassroots businesses, and to promote green lending in North Macedonia by offering a financial package of €9 million to ProCredit Bank.

A €2 million loan under the EBRD’s flagship Youth in Business (YiB) programme is a first in North Macedonia and will support local micro, small and medium-sized enterprises (MSMEs) owned or managed by entrepreneurs under the age of 35.

The inaugural YiB transaction with ProCredit Bank was signed at an EBRD-organised event on promoting the youth entrepreneurship ecosystem. It was attended by various stakeholders such as the National Bank of the Republic of North Macedonia, civil servants, commercial banks, youth organisations, start-ups and accelerators.

Advisory support and guarantees linked to the YiB programme are supported by the governments of Sweden, Italy and Luxembourg.

The €7 million EBRD loan under the Green Finance Facility (GFF) will be on-lent to local small and medium-sized enterprises (SMEs). In addition to much-needed loans, eligible domestic businesses will also receive grants (of up to 10 per cent of sub-loan amounts) to support their investments in renewable and energy efficient technologies.

Technical cooperation funds under the GFF will support the country’s banks willing to finance, and businesses willing to undertake green economy projects. This is a blend of loans and grants provided by the Joint Sustainable Development Goals (SDG) Fund and the government of North Macedonia under the umbrella of the United Nations Development Programme (UNDP).

The recently launched YiB programme in the six Western Balkans economies is targeting innovative young entrepreneurs who have limited access to financial and advisory services. The Bank is aiming to provide up to €100 million in the region over the next five years through local partner banks, as well as through non-banking institutions under its Advice for Small Business (ASB) programme.

The GFF is a joint pilot initiative by the EBRD, UNDP and the government of North Macedonia. It provides access to affordable green finance for SMEs, as well as marketable but underserved groups of individuals and households for investments in renewable energy and energy efficient measures, contributing to the reduction of greenhouse gas emissions and air pollution.

Since North Macedonia joined the EBRD in 1993 the Bank has invested more than €2.6 billion in 180 projects there, nearly half of which have been in the private sector. The Bank’s priority for the country is to support competitiveness, the green transition and further integration into regional and global markets.