14th December 2023, Skopje – Ministry of Finance has been extended EUR 90 million by the KfW Development Bank as support to budget policies to the end of managing the crisis challenges. Minister of Finance, Fatmir Besimi, and Office Director of KfW, North Macedonia and Kosovo Offices, Moritz Remé, signed today the Loan Agreement so as to access the EUR 90 million.
“Today, we signed Loan Agreement with KfW to have EUR 90 million available, funds to be used by the Government to cope with the crisis challenges, improve its external financial situation, as well as implement structural reforms. Both the Government and the Ministry of Finance will use the funds, as part of an extensive envelope, extended under favourable terms and conditions, to bridge the crisis and support the citizens and the economy in its recovery and growth acceleration. At the same time, we put efforts to provide the funds under the lowest possible costs and not pass on the burden to the future generations”, Minister Besimi said.
He thanked KfW for approving the Loan, speaking in favour of the Government’s commitment to restructuring and decarbonizing the domestic energy sector and ensuring safe and stable supply of electricity to the households and the companies.
“We have ensured, even in times of crisis, with the available resources and the model we have applied, a stable and safe supply of electricity to all households and companies across the country. We continue implementing the policies aimed at increasing the national production, diversifying the sources of energy, all to the end of decarbonizing the domestic energy sector by investing in renewables and environment protection.”, the Minister emphasized.
According to Remé, the aim of this Loan is to support North Macedonia in its energy transition and in achieving its ambitious decarbonisation goals in line with the Paris Agreement and the reduction of Green House gases of 82% in comparison with the reference level in 1990.
“Within the frames of the Berlin Process and the Climate Partnership with the West Balkan Countries, KfW is supporting North Macedonia in its efforts to green its energy generation capacities and increase the energy efficiency. In the energy sector, in North Macedonia, KfW is financing wind parks, solar PV installations, sustainable district heating systems, rehabilitation of the big hydro power plants and modernization of the student dormitories. The current portfolio of KfW in the energy and climate sector in the country amounts to EUR 227 million, with additional EUR 210 million under preparation”, Remé pointed out.
KfW loan will be disbursed in one tranche, expected to be made available by the end of this year.
KfW loan is part of the extensive envelope the Government provided for managing the crisis, including EUR 100 million from the European Union, as well as World Bank EUR 93.8 million DPO.