SKOPJE, December 15, 2023—The World Bank will lend EUR 93.8 million to North Macedonia to strengthen the country’s fiscal position and financial sector, as well as facilitate its green transition.
The new financing under the North Macedonia Sustainability and Resilience Development Policy Operation approved today by the World Bank Board of Directors, aligns with North Macedonia’s macroeconomic priorities as outlined in the Government Fiscal Strategy 2024-28 and the Government’s Economic Reform Program 2023-25.
“North Macedonia, similar to other countries in Europe, is grappling with persistent inflationary pressures, putting strain on public finances amid monetary tightening and rising borrowing costs,” said Massimiliano Paolucci, World Bank Country Manager for Kosovo and North Macedonia. “With this support, we aim to provide immediate financial resources to strengthen fiscal sustainability while facilitating the country’s much-needed climate reforms and energy transition.”
The new World Bank operation supports efforts to reduce North Macedonia’s reliance on fossil fuels through improved energy efficiency in the public sector, increased investments in renewable energy, and better data collection regarding the banking sector’s exposure to climate risks.
The reforms may help the country attract around EUR 45 million of private investments in renewable energy, including rooftop solar installation, by 2026.
"We have been working closely with international partners to ensure our policy support and technical assistance are complementary and are aligned with the European Union accession agenda,” said Sanja Madzarevic Sujster, World Bank Senior Economist for the Western Balkans. “We hope that this cooperation will reinforce the government’s commitment to reforms towards sound macroeconomic policies and financial sector stability.”
The World Bank loan consists of a single withdrawal tranche of EUR 93.8 million with a final maturity of 11 years, including 4.5 years of grace period.