Public Call for Loan Applications
Public Call for Loan Applications
The Development Bank of the Republic of North Macedonia (the “Development Bank”) announced its second public call for providing interest-free loans to local companies. The aim of these loans is financial assistance to micro, small, and medium companies in North Macedonia. The total amount of available funds for this public call is MKD 492,000,000, i.e. approximately EUR 8,000,000. Full details are available only in Macedonian here).
1. Criteria for application
Micro, small, and medium companies, which have up to 250 employees, are eligible to submit their loan applications under this public call if they meet the following criteria:
- to be registered in the Republic of North Macedonia;
- to be at least 51% privately owned;
- to have paid all taxes and salary contributions;
- to be clear of bankruptcy or liquidation;
- to have operated for more than six months and submitted an annual account to the Central Registry of the Republic of North Macedonia;
- in accordance with the financial statements for the last fiscal year, the company’s principal capital and reserves are not less than 33% of the amount of the requested loan (except for sole proprietors);
- as of 31 January 2020, to have classification better or equal to B (calculation of average risk) in accordance with the data from the credit register of the National Bank of the Republic of North Macedonia, or to be clear of any liability towards banks;
- the indicator for the degree of financial indebtedness of the company should be less than 5.0, calculated as a ratio of total obligations upon loans and credits/principal capital and reserves (except for sole proprietors); and
- reduction of the company’s income for more than 30% in the current/last available month in 2020 compared to the same month’s income/average monthly income in 2019.
2. Amount of the loan
The amount of the approved loan will depend on the number of employees of the company and will be calculated in accordance with the following formula: MKD 14.500 (EUR 250) х 3 months х number of employees, except in the following cases:
- a company that has up to five employees can apply for up to 184,500 (approximately EUR 3,000); and
- a company that has 128 to 250 employees can apply for up to MKD 5,535,000 (approximately EUR 90,000).
The number of employees as of 31 January 2020 should be confirmed by the borrower with a signed statement, in a form published on the Development Bank’s website.
3. Repayment period
The repayment period of the loan is three years with a grace period of 12 months. The repayment of the loan is in quarterly instalments.
4. Interest rate
The annual interest rate on these loans is 0%, and the Development Bank will not charge any commission for processing the loan applications.
5. Security
The loans should be secured by a notarized promissory note (with an enforcement clause) issued by at least one of the company’s owners. The costs for establishing the security shall fall on the company.
6. Documentation
The application should contain:
- Completed loan application;
- Application for registration of the company as a client to the Development Bank;
- Statement on related parties;
- Statement on (non)existence of holder of public office;
- Statement on the credit risk exposure of the company;
- Statement for the number of employees as of 31 January 2020;
- Certificate for paid taxes and salary contributions as of 31 January 2020 (the request for this document can be made through the system for e-taxes here );
- Certified signature form (template available on the website of the Central Registry of the Republic of North Macedonia here);
- Trade Registry excerpt which is not older than six months;
- Listing of the processed annual account for 2019; and
- Proof for the non-existence of bankruptcy and/or liquidation procedure.
The template documents under points a to f are provided by the Development Bank.
The documents under points i to k can be obtained electronically through the system for e-certificates of the Central Registry of the Republic of North Macedonia here. The companies can attach these documents to the loan application if they have already obtained them. Otherwise, they can be obtained by the Development Bank.
7. Distribution of the funds
Companies that meet the required loan criteria will be served in accordance with the “first come, first served” principle.
8. Application and deadlines
Companies will be able to submit the loan applications in electronic form on the e-mail address: kreditiranjecovid2@mbdp.com.mk.
The loan applications may be submitted until 14 May 2020.
The Development Bank of the Republic of North Macedonia (the “Development Bank”) announced its second public call for providing interest-free loans to local companies. The aim of these loans is financial assistance to micro, small, and medium companies in North Macedonia. The total amount of available funds for this public call is MKD 492,000,000, i.e. approximately EUR 8,000,000. Full details are available only in Macedonian here).
1. Criteria for application
Micro, small, and medium companies, which have up to 250 employees, are eligible to submit their loan applications under this public call if they meet the following criteria:
- to be registered in the Republic of North Macedonia;
- to be at least 51% privately owned;
- to have paid all taxes and salary contributions;
- to be clear of bankruptcy or liquidation;
- to have operated for more than six months and submitted an annual account to the Central Registry of the Republic of North Macedonia;
- in accordance with the financial statements for the last fiscal year, the company’s principal capital and reserves are not less than 33% of the amount of the requested loan (except for sole proprietors);
- as of 31 January 2020, to have classification better or equal to B (calculation of average risk) in accordance with the data from the credit register of the National Bank of the Republic of North Macedonia, or to be clear of any liability towards banks;
- the indicator for the degree of financial indebtedness of the company should be less than 5.0, calculated as a ratio of total obligations upon loans and credits/principal capital and reserves (except for sole proprietors); and
- reduction of the company’s income for more than 30% in the current/last available month in 2020 compared to the same month’s income/average monthly income in 2019.
2. Amount of the loan
The amount of the approved loan will depend on the number of employees of the company and will be calculated in accordance with the following formula: MKD 14.500 (EUR 250) х 3 months х number of employees, except in the following cases:
- a company that has up to five employees can apply for up to 184,500 (approximately EUR 3,000); and
- a company that has 128 to 250 employees can apply for up to MKD 5,535,000 (approximately EUR 90,000).
The number of employees as of 31 January 2020 should be confirmed by the borrower with a signed statement, in a form published on the Development Bank’s website.
3. Repayment period
The repayment period of the loan is three years with a grace period of 12 months. The repayment of the loan is in quarterly instalments.
4. Interest rate
The annual interest rate on these loans is 0%, and the Development Bank will not charge any commission for processing the loan applications.
5. Security
The loans should be secured by a notarized promissory note (with an enforcement clause) issued by at least one of the company’s owners. The costs for establishing the security shall fall on the company.
6. Documentation
The application should contain:
- Completed loan application;
- Application for registration of the company as a client to the Development Bank;
- Statement on related parties;
- Statement on (non)existence of holder of public office;
- Statement on the credit risk exposure of the company;
- Statement for the number of employees as of 31 January 2020;
- Certificate for paid taxes and salary contributions as of 31 January 2020 (the request for this document can be made through the system for e-taxes here );
- Certified signature form (template available on the website of the Central Registry of the Republic of North Macedonia here);
- Trade Registry excerpt which is not older than six months;
- Listing of the processed annual account for 2019; and
- Proof for the non-existence of bankruptcy and/or liquidation procedure.
The template documents under points a to f are provided by the Development Bank.
The documents under points i to k can be obtained electronically through the system for e-certificates of the Central Registry of the Republic of North Macedonia here. The companies can attach these documents to the loan application if they have already obtained them. Otherwise, they can be obtained by the Development Bank.
7. Distribution of the funds
Companies that meet the required loan criteria will be served in accordance with the “first come, first served” principle.
8. Application and deadlines
Companies will be able to submit the loan applications in electronic form on the e-mail address: kreditiranjecovid2@mbdp.com.mk.
The loan applications may be submitted until 14 May 2020.
