Post COVID-19: Financial Support for Investment Projects in North Macedonia
Post COVID-19: Financial Support for Investment Projects in North Macedonia
1. Introduction
On 09 June 2020, the Government of the Republic of North Macedonia (the “Government”) adopted a decree with a legal effect as a law that extends the provision of financial support to companies in the industrial sector by co-financing investment projects in the period between March 2020 and December 2021.
2. Amount of the financial support
Companies may be provided with financial support in the amount of up to 25% of the realized investment project in accordance with the investment plan. Depending on the total revenue in 2019, the companies may apply for:
- up to EUR 40,000 if the company in 2019 generated total revenue up to EUR 1,000,000;
- up to EUR 100,000 if the company in 2019 generated total revenue between EUR 1,000,001 and 10,000,000;
- up to EUR 140,000 if the company in 2019 generated total revenue between EUR 10,000,001 and 50,000,000; and
- up to EUR 200,000 if the company in 2019 generated total revenue more than EUR 50,000,000.
3. Eligible companies
Eligible for this financial support measure are the companies that:
- have a plan for implementation of an investment project in 2020;
- work in production sectors (classified as production in accordance with the National classification of business activities, unless excluded in accordance with the Law on State Aid Control);
- operate in the sector of trade if they invest in fixed assets; or
- perform activities in the IT and communications sector if the investment is related to the establishment of a new organisational unit for technological development, research and/or development of new software or hardware solutions.
Companies that have negative financial results in 2019, as well as companies that have already been provided with another form of state aid for realisation of an investment project, are not eligible for this financial support.
4. Public call
The public call for this financial support shall be published on the website of the Ministry of Economy on 12 June 2020 and shall last until 31 July 2020, and shall contain information regarding eligible companies, amount of financial support, documentation requirements (such as the forms of the application and the investment plan), a draft Agreement for financial support (which is to be concluded between the Government and the company) and other information and documentation necessary to apply for the financial support.
5. Securing the financial support
As a security mechanism for financial support, the company will need to issue a promissory note in favour of the financial support provider, in a form of a notary deed with an enforceability clause.
6. Obligations of the beneficiaries
The company provided with the financial support will be obliged to submit a report for the realisation of the investment project until 31 January 2021.
A company which fails to complete the investment project or fails to prove at least 80% of the value of the investment, will have to repay the received aid to the Budget of the Republic of North Macedonia until 01 March 2022.
1. Introduction
On 09 June 2020, the Government of the Republic of North Macedonia (the “Government”) adopted a decree with a legal effect as a law that extends the provision of financial support to companies in the industrial sector by co-financing investment projects in the period between March 2020 and December 2021.
2. Amount of the financial support
Companies may be provided with financial support in the amount of up to 25% of the realized investment project in accordance with the investment plan. Depending on the total revenue in 2019, the companies may apply for:
- up to EUR 40,000 if the company in 2019 generated total revenue up to EUR 1,000,000;
- up to EUR 100,000 if the company in 2019 generated total revenue between EUR 1,000,001 and 10,000,000;
- up to EUR 140,000 if the company in 2019 generated total revenue between EUR 10,000,001 and 50,000,000; and
- up to EUR 200,000 if the company in 2019 generated total revenue more than EUR 50,000,000.
3. Eligible companies
Eligible for this financial support measure are the companies that:
- have a plan for implementation of an investment project in 2020;
- work in production sectors (classified as production in accordance with the National classification of business activities, unless excluded in accordance with the Law on State Aid Control);
- operate in the sector of trade if they invest in fixed assets; or
- perform activities in the IT and communications sector if the investment is related to the establishment of a new organisational unit for technological development, research and/or development of new software or hardware solutions.
Companies that have negative financial results in 2019, as well as companies that have already been provided with another form of state aid for realisation of an investment project, are not eligible for this financial support.
4. Public call
The public call for this financial support shall be published on the website of the Ministry of Economy on 12 June 2020 and shall last until 31 July 2020, and shall contain information regarding eligible companies, amount of financial support, documentation requirements (such as the forms of the application and the investment plan), a draft Agreement for financial support (which is to be concluded between the Government and the company) and other information and documentation necessary to apply for the financial support.
5. Securing the financial support
As a security mechanism for financial support, the company will need to issue a promissory note in favour of the financial support provider, in a form of a notary deed with an enforceability clause.
6. Obligations of the beneficiaries
The company provided with the financial support will be obliged to submit a report for the realisation of the investment project until 31 January 2021.
A company which fails to complete the investment project or fails to prove at least 80% of the value of the investment, will have to repay the received aid to the Budget of the Republic of North Macedonia until 01 March 2022.
