North Macedonia receives first loan under the Green Finance Facility

Sparkasse Bank in Skopje has become the first partner financial institution in North Macedonia to participate in the innovative Green Finance Facility (GFF). GFF is a pilot collaboration between the European Bank for Reconstruction and Development (EBRD), the United Nations and the country’s government.

The EBRD’s contribution comprises credit lines of up to EUR 30 million for local participating banks and leasing companies. This contribution will be complemented by grant funds of up to USD 4,5 million, comprising up to USD 3 million in grant funds secured by the Joint SDG Fund and the government of North Macedonia for investment incentives to end borrowers, and up to USD 1,5 million in technical cooperation grant funds secured by the Joint SDG Fund.

The combined funds will be provided to local SMEs. The SMEs will be entitled to receive 10% grants for investments that are completed successfully in renewables or combined energy efficiency and renewable energy projects or 5%grants for projects involving technologies that are exclusively energy efficient. Thanks to the technical cooperation element, the GFF will also help the banking sector to increase its capacity to finance green economy projects.

As part of gender additionality, participating banks will also engage in EBRD-led policy dialogue with the Central Bank of North Macedonia to promote financial inclusion of women and a more gender-responsive financial sector.

The EBRD is a major institutional investor in North Macedonia. To date, it has invested around EUR 2,7 billion in nearly 180 projects. The Green Finance Facility joint programme seeks to provide access to affordable green finance for SMEs and marketable but underserved target groups of individuals/households for investments in renewable energy and energy efficiency solutions, which will contribute to the reduction of greenhouse gas emissions and air pollution in the country.