City of Skopje will build two multi-storey car parks in the central city area. Project is in the amount of EUR 19 million. Part of the funds are provided from the budget of the City of Skopje, part from the sale of business premises to be built within the multi-storey car parks, while the remaining funds are provided from loan from NLB Tutunska banka, for which agreement between the City of Skopje and the Bank was signed today. Ministry of Finance also approved the loan.
 
Loan amounts to EUR 8.5 million with 10 year- repayment period, two-year grace period and Eurolibor interest rate plus 5.1%. This is first project of the local-self government, in which a domestic bank participates.
 
According to Vice Prime Minister and Minister of Finance, Zoran Stavreski, it will contribute to development of infrastructure and provide for larger parkin gspace in the central area of Skopje, job creation and everything that means better-quality of life of citizens in the capital.
 
– The Project is also important in terms of Government efforts in supporting the local development by approving such loans, whereby 17 loans for municipalities were approved this year alone. Parts of them were provided through financing by foreign financial institutions, part from the Budget, and now we are starting agreements with the domestic banks, Stavreski said.
 
Emphasizing the importance of this Agreement in terms of supporting the local development by the domestic banking sector, he assessed that the loan from NLB Tutunska banka proves that the domestic banking system has strength and understanding as regards financing projects of significance to the Republic of Macedonia.
 
– This opens the door for a stronger investment cycle within the municipalities to be financed by the domestic banks. It proves that domestic banks have potential to financially support the local economic development, as well as expertise and knowledge to be able to appropriately assess the projects, contributing to economic development, which are profitable and can be approved by the bank, Stavreski said, adding that this will serve as a good example to the other banks in Macedonia to support the local economic development, as well as major projects of the Government.
 
Mayor of Skopje Koce Trajanovski pointed out that the City of Skopje is one of the institutions in Macedonia, having high credit rating and that this credit will provide for the Project to be realized on time.
 
– The City of Skopje has already borrowed from two foreign banks. However, I believe this practice and confidence is an important step for the start of investments by domestic bank in the local- government, Trajanovski said, announcing that the issuance of municipal bonds will start next year so as to finance some of the projects of the City of Skopje.
 
CEO of NLB Tutunska banka Gorgi Jancevski pointed out that signing of today’s agreement is symbolic start of banking sector participation in financing projects of wider social interest or a more significant start of the cooperation between the banking sector and the municipalities.
 
Construction of the multi-storey car park near Cveten pazar (Flower market) is expected to start at the end of January next year, while the other one at Dame Gruev Street is planned to start at the end of March or at the beginning of April. They are envisaged to be completed in 2012.(MIA)
