Skopje, 22 August 2023 (MIA) - Support for financing costs for the improvement of the production process, investments in new renewable energy sources and maintaining the already built renewable-energy power plants, are the goals of the EUR 100 million loan provided by the European Bank for Reconstruction and Development (EBRD) for Power Plants of North Macedonia (ESM).

The Loan Agreement was signed on Tuesday at the Ministry of Finance.

The term of repayment is five years, with a grace period of 6 months and a variable interest rate which includes a six-month Euribor increased by a margin of 1 percent. The state will provide the guarantee, and ESM will use the funds and implement all obligations.

Finance Minister Fatmir Besimi pointed out that with the Agreement the Government further demonstrates its serious approach in dealing with the energy crisis.

"Today we secured additional EUR 100 million in support for ESM. The situation is made easier as the EUR 100 million do not need to be taken out of the budget," Besimi said.

Besimi reminded that from 2020 until 2022, the Government reacted quickly in dealing with the crisis and allocated around EUR 2 billion. While in 2023, the Government planned EUR 225 million in support of citizens and the economy.

ESM director, Vasko Stefanov, thanked EBRD for their support, and said that ESM will continue on the path toward "the green scenario."

"Multiple projects have been planned which will help make the country energy independent. Support and cooperation with institutions such as EBRD is key and contributes to a quicker and easier transition towards the 'green' agenda by committing to transition to clean energy, which aims to reduce greenhouse gases by 61 percent," Stefanov emphasized.

Apart from the Loan Agreement, at the event in the Ministry, a Guarantee Agreement between North Macedonia and the EBRD was signed as well.

Finance Minister Besimi, EBRD’s Managing Director for Central and South Eastern Europe, Charlotte Ruhe, and ESM Director Stefanov were present at the signing of the agreements. ssh/ad/

Photo: MIA