Skopje, 28 January 2025 (MIA) - The Government greenlighted Tuesday the agreements on the use of the funds from the Hungarian credit line for businesses, opening the path for the Development Bank to receive the funds and transfer them to the commercial banks.

The funds will be repayed in 15 years, including a three-year grace period, the interest rate stands at 1.95 percent and no additional fees. The maximum approved amount is set at EUR 10 million, whereas all 13 banks in the country are involved in the project.

The Government said companies and citizens would ultimately benefit through increased competitiveness of businesses and opening of new jobs.

Finance Minister Gordana Dimitrieska Kochoska told today's press conference that the procedure will be transparent and criteria will be the same for all.

"Costs for the loan approval are zero denars. The Government's decision marks the final stage in making the funds of the Hungarian loan intended for businesses operational. This signing of the agreements opens the path for the Development Bank to get the funds from the Budget and then transfer them to the commercial banks and ultimately to businesses," said Dimitrieska Kochoska.

She added that the risk related to the funds' approval lies with the banks, which would decide what type of projects they would support.

"Of course, production companies will have priority but if you look at the National Bank analyses, you will see that loans approved by the banks annually are not much higher than this amount, and that is why we have decided to make these funds available to all companies," noted Dimitrieska Kochoska.

Regarding suspicions over trading in influence after the scope of companies eligible to apply has been enlarged, PM Mickoski provided assurance there would be no such thing.

"The intention is to make full use of the funds, and the decision was made based on the analyses and numbers that show the economy can use about EUR 250 million per year. I suppose you refer to the past, when concessions were given to close relatives of government members or PMs signing concessions for facilities using renewable energy sources. Rest assured, this Government will not trade in influence while I am PM," said Mickoski.

The line of credit for businesses is part of the Hungarian loan in the amount of EUR 500 million. The government signed a Loan Facility Agreement with Hungary’s Export-Import Bank in October of last year. Half of these finances are intended for companies and the other half for municipalities.

Photo: Government