ENVIRONMENT FOR BUSINESS IN REPUBLIC OF MACEDONIA
FINANCIAL SUPPORT OF COMPANIES
FINANCIAL SYSTEM
The financial system in the Republic of Macedonia is consisted of: National Bank of the R. of Macedonia (NBRM), commercial banks, savings banks, exchange offices, the Deposit Insurance Fund, insurance companies, investment funds, pension funds, management companies funds, leasing companies, brokerage houses and stock.
BANKS
The banking system is consisted of 17 banks (15 private banks, one branch of a foreign bank and state-owned Macedonian Bank for development support) and four savings banks. According to the Banking Law, a bank must be established as a joint stock company with it’s property in the country. Banks are obliged to follow the prescribed supervisory standards in terms for solvency and capital adequacy, risk management, exposure limits, investments, liquidity.Savings banks are limited in their banking activities and services (savings and loans) to physical entities, some of them offer micro-credit type of financing.
According to the Banking Law, foreign banks can enter the Macedonian banking market through a representative (with the approval of the Governor) and a subsidiary or branch (with the permission of the Governor).
The three largest banks are: Komercijalna Banka AD Skopje, Stopanska banka AD Skopje (where the National Bank of Greece is a major shareholder) and NLB Tutunska Banka AD Skopje (where NLB Ljubljana, Slovenia, is a major shareholder) and together they own more than 60% of net assets in the banking system.
The banking system stays low and has a relatively low level of financial intermediation. Interest rates on bonds were 3.25% in 2013. Average rates on commercial loans were 8.2% in 2013.
DEVELOPMENT FUNDS AND PROGRAMMES
There are a great number of development and programs which support the development of business on national level, having the small and medium-sized companies in focus. Most of these funds are offered by development financial institutions, donors and great number of projects.
The Government supports the strategic sub-sectors with subsidies and export stimulations. The best way to inform oneself on the different opportunities is by contacting the Agency for Entrepreneurship Support, the Macedonian Bank for Support and Development, the Chamber of Commerce and international donor organizations.
SUPPORT FOR SMALL AND MEDIUM-SIZED COMPANIES
Support for small and medium-sized companies in the Republic of Macedonia can be obtained through different government and municipal activities, projects and donors. There are a number of programs offering support in terms of training, investment, equipment,marketing, and promotional activities which can be obtained as grants or long-term credits. The Secretariat for European Affairs (SEA) that is part a of the Government is authorized to record all types of available support. You can get more information on the website of the Central Data Base for foreign support of the Government of Republic of Macedonia.
SHORT TERM CREDITING OF ECONOMY
Short term credits are offered by all commercial banks in Republic of Macedonia in form of loans, or debit balance (on the basis of the annual turnover). The interest rate of the short-term credits is in the amount of the discount rate of the National Bank of Republic of Macedonia.
SUPPORT FOR TRADICIONAL CRAFTS
The craftsmen in Republic of Macedonia also receive support through the credit lines of the commercial banks, or through donors. More information for the available assets for this branch can be obtained at the Central Data Base for foreign support of the Government of Republic of Macedonia, the Chamber of Crafts of Republic of Macedonia, as well as it's regional organization in Strumica.