Cooperation with the United Nations Development Programme – UNDP

United Nations Development Programme – UNDP (www.undp.org) is part of the global development network of the United Nations, striving for changes and connection  countries to knowledge, experience and resources, so as to help people build a better life. It is present in  almost 170 countries throughout the world and it works with them on finding solutions for the global and the national challenges.

It supervises the realization of the Millennium Development Goals, helping the countries find innovative ways to include all citizens in the economic, social and civil life and it prepares documents to support the policies, such as the National Human Development Report.

UNDP has been present in the Republic of North Macedonia since 1997 (www.undp.org.mk). It fully supports the country in its efforts to improve its development standards and fulfill the EU requirements.

UNDP support includes development of human and institutional capacities, provision of knowledge, showing solutions and building partnerships, as well as funds for development, in the following areas:

• good governance;
• social inclusion; and
• energy and environment.

Purpose of the good governance area is to strengthen institutions and develop skills of public administration employees in creating policies and improving the services. Support UNDP provides in this area is at different levels, including policy reform, development of institutional capacity and implementation, as well as increasing youth participation in local governance and  policy making processes .

Purpose of the social inclusion area is to support national efforts in improving the social and the economic situation of individuals and groups exposed to risk of social exclusion, so as to increase job opportunities for all people and empower people from the Roma communities throughout the region to gain better access to effective social services and business development opportunities.

Support in the energy and environment area is aimed at helping institutions in reaching decisions for undertaking measures against pollution, as well as measures related to biodiversity and climate change. UNDP support is extended at political, institutional and implementation level.

Cooperation with International Fund for Agricultural Development – IFAD

IFAD – International Fund for Agricultural Development (www.ifad.org) is a specialized UN Agency, which was established in 1977 as an international financial institution for support to agriculture . Unlike the other financial institutions having far wider scope of work, IFAD has precisely determined goal:

• improving the living standard of the population in the rural areas
• implementing projects reducing rural poverty in the developing countries;
• increasing revenues in the household;
• strengthening individual agricultural economy;
• improving production and its competitive power on the markets.

First IFAD loan in the Republic of North Macedonia, extended in 1997, was intended for implementation of Southern and Eastern Regions Rural Rehabilitation Project- IFAD 1. Loan value amounted to US$ 7.6 million.

Implementation of Agricultural Financial Services Project – IFAD 2 commenced in 2002. Project value was US$ 8 million and it was completed within the envisaged 5-year period by 2007. The Kingdom of Sweden also provided financial assistance through the Swedish International Development Agency – SIDA, with a grant in the amount of US$ 854,740.

Due to the high interest rates, the Government renounced IFAD 3 in 2007 and it undertook activities aimed at developing the agriculture sector through the Agricultural Discount Credit Fund.

Agricultural Discount Credit Fund

Agriculture Credit Discount Fund (ACDF) is an institution administering the renewable credit fund comprising IFAD 1, IFAD 1, World Bank credit lines for support for the private sectors PSDL 1, and PSDL 2 and credit line under EIB Apex Global Loan. This credit fund is intended for crediting the agribusinesses through 11 (eleven) involved financial institutions with which Ministry of Finance has concluded Sub-Loan Agreements (Sparkasse Banka Makedonija, Komercijalna Banka, NLB Tutunska Banka, CKB, Stopanska Banka – Skopje, Stopanska Banka – Bitola, UNI Banka, ProCredit Banka, Ohridska Banka, ”Moznosti” Saving House and “FULM” Saving House.

ACDF has been operational within the Macedonian Bank for Development Promotion (MBDP) as of July 2010.

ACDF’s mission is to provide sustainable financial services in agriculture, which are cost-effective for the financial institutions, at the same time acceptable for the farmers, small- and medium-sized enterprises engaged in primary agricultural production, processing of agricultural products and export of agricultural products, and natural persons and legal entities having concluded agreement for using funds under the IPARD Programme.

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