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SKOPJE – On March 6, 2025, North Macedonia’s Ministry of Finance transferred the first tranche of €10.4 million from the central budget to the Development Bank, marking the beginning of a €250 million initiative aimed at boosting domestic companies and private sector investment.
The transfer followed an official request from the Development Bank to draw down funds, based on approvals granted by participating commercial banks for selected projects. The funds are part of the 2025 national budget allocation designed to stimulate a new investment cycle and increase economic activity across the private sector.
“We expect companies to recognize the favorable terms provided under this credit line, and we anticipate full utilization of the allocated funds,” wrote Minister of Finance Gordana Dimitrieska-Kochoska in a Facebook post. “This represents strong support for the domestic economy, particularly in light of challenging global conditions.”
Background and Fiscal Strategy
The Ministry has earmarked €250 million in the 2025 state budget to reinforce domestic business resilience, encourage job creation, and catalyze long-term private sector investment. The program is expected to complement monetary policy efforts by improving access to finance for small and medium enterprises (SMEs), which account for over 65% of employment in the country.
By leveraging commercial bank networks for project screening, the initiative ensures risk-sharing and accelerates disbursement timelines, setting a precedent for hybrid public-private funding mechanisms in the Western Balkans.
Implications for the Private Sector
The funds will be issued through structured credit lines with favorable interest rates, long grace periods, and targeted eligibility criteria focused on innovation, export potential, and job growth.
“This is a timely intervention, especially for capital-intensive sectors like manufacturing and agri-processing,” said Aleksandar Petrovski, a corporate banker in Skopje. “It could unlock delayed investment plans and stabilize SME balance sheets.”
Government Commitment
Minister Dimitrieska-Kochoska emphasized that both the Ministry of Finance and the Government remain committed partners to the business sector, signaling continuity in fiscal support amid global economic uncertainties.
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