6 April 2006
The EBRD has started work on the revision of its strategy for Former Yugoslav Republic of Macedonia ("FYR Macedonia"). Comments are invited to help the Bank in revising its strategy. Any comments should be submitted to fyrmacedoniastrategy@ebrd.com no later than 2 June 2006 so that they can be taken into account. The current Strategy for FYR Macedonia (0.4Mb), which has been available on the EBRD Web site since August 2004, is a basis on which to comment.
The first Article of the Agreement Establishing the Bank states that "the purpose of the Bank shall be to foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiative in the Central and Eastern European countries committed to and applying the principles of multiparty democracy, pluralism and market economics."
In order to achieve these objectives, the Bank primarily provides finance for investment projects, with a special focus on the private sector, carefully selecting projects that promote transition by:
creating, expanding and improving markets;
establishing and strengthening institutions, laws and policies that support markets; and
facilitating the adoption of market-oriented skills and sound business practices.
In addition, every Bank project is examined for its environmental impact and the EBRD places special emphasis on projects that are oriented directly towards environmental improvements and energy efficiency.
In the last country Strategy, the Bank noted that the Government elected in September 2002 continued the implementation of the Ohrid Framework Agreement. Political stability and military security had been restored since the security crisis in 2001. The economy was continuing to recover after the severe negative shock of the security crisis in 2001. Overall progress in transition was steady but slow, with the pace of structural reforms in the preceding two years affected by political uncertainty and changes.
The perceived transition challenges for the country’s authorities, as identified at the time of the Bank’s strategy, were to:
Improve the business environment, particularly for SMEs, reducing bureaucracy, improve corporate governance standards, and improve SME access to financing.
Reform the judiciary and step-up the fight against corruption.
Improve governance and strengthen the banking sector, including through consolidation.
Implement further regulatory reform and commercialisation in key utilities to attract strong investment flows to modernise relevant infrastructure.
The strategic priorities for the Bank were to:
Support strategic foreign investors and local export-oriented companies showing good corporate governance.
Channel more funding to SMEs through commercial banks and micro-lending institutions, including through the implementation of an EU/EBRD Western Balkans SME framework; (ii) Support for the strengthening and consolidation of the banking sector, and (iii) Expand the range of financial instruments offered to banks.
Support utility restructuring and privatisation through the implementation of the pre-privatisation agreement for the electricity company, (ii) support energy projects that fit the regional energy market development such as regional electricity and gas interconnections, (iii) promote road network rehabilitation in conjunction with restructuring of the road maintenance sector, and (iv) develop, where possible, municipal guaranteed water sector investments.
During the current strategy period, the EBRD signed the following projects. In 2004, the EBRD signed Migros Foodstores Skopje project (EUR 8.6 million) and signed a syndicated loan to Tutunska Banka (the total syndication of EUR 20 million including EUR 7 million from the EBRD) in the private sector and the ESM Pre-Privatisation Support Share Purchase Project (EUR 45 million) in the public sector. In 2005, the EBRD financed Mittal Steel Skopje Project (EUR 25 million) and opened another SME credit line with Investbanka (EUR 5 million) under the an EU/EBRD Western Balkans SME framework. Eurostandard Bank and Investbanka became new partner banks under the existing regional Trade Facilitation Program in 2005.
To prepare the new Strategy for FYR Macedonia, it would be useful for the Bank to receive comments on the business and economic environment, as it substantially affects the Bank’s operational policies and activities, particularly in the following areas:
1. Issues related to the investment climate
This would include issues concerning (i) the legal environment (the implementation and enforcement of laws), (ii) the regulatory environment for enterprises (such as issues related to taxation, trade protection, price-setting mechanisms, etc.), (iii) the functioning of public administration, and (iv) corporate governance and integrity. We seek your views on how serious these issues are for businesses and how you think the EBRD could help to overcome them.
2. Issues related to access to finance
This would include comments on the ease of access to funding by small and medium scale enterprises in particular, given the current state of development of the banking sector and the low level of financial intermediation. What are the main obstacles? What measures should be taken to enhance the banking sector? What type of projects should be supported by the EBRD?
3. Issues related to the social impact of EBRD investments
This would include issues concerning (i) micro, small and medium scale enterprises that enhance opportunities for entrepreneurship, job creation and social flexibility; (ii) investment in public utilities, with particular attention given to issues relating to social impact, tariff reform and affordability.
4. Issues related to the environmental impact of EBRD activities
This would include issues concerning environmental improvements and energy efficiency.
The Strategy provides guidance for EBRD activities in a country, identifying the main challenges which the Bank is best placed to confront. As such, the Strategy cannot address all of the development issues a country faces and necessarily must be selective in identifying issues where the Bank has the experience and ability to play a constructive role.
The Bank will take into account all comments received. A summary of these, with staff responses, will be posted on the Web site following the Board approval of the revised Strategy. The Country Strategy is, however, a Bank document and the responsibility for its contents remains with the Bank.
http://www.southeasteurope.org/subpage.php?sub_site=2&id=16859&head=hl
Made in Macedonia
The EBRD has started work on the revision of its strategy for Former Yugoslav Republic of Macedonia ("FYR Macedonia"). Comments are invited to help the Bank in revising its strategy. Any comments should be submitted to fyrmacedoniastrategy@ebrd.com no later than 2 June 2006 so that they can be taken into account. The current Strategy for FYR Macedonia (0.4Mb), which has been available on the EBRD Web site since August 2004, is a basis on which to comment.
The first Article of the Agreement Establishing the Bank states that "the purpose of the Bank shall be to foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiative in the Central and Eastern European countries committed to and applying the principles of multiparty democracy, pluralism and market economics."
In order to achieve these objectives, the Bank primarily provides finance for investment projects, with a special focus on the private sector, carefully selecting projects that promote transition by:
creating, expanding and improving markets;
establishing and strengthening institutions, laws and policies that support markets; and
facilitating the adoption of market-oriented skills and sound business practices.
In addition, every Bank project is examined for its environmental impact and the EBRD places special emphasis on projects that are oriented directly towards environmental improvements and energy efficiency.
In the last country Strategy, the Bank noted that the Government elected in September 2002 continued the implementation of the Ohrid Framework Agreement. Political stability and military security had been restored since the security crisis in 2001. The economy was continuing to recover after the severe negative shock of the security crisis in 2001. Overall progress in transition was steady but slow, with the pace of structural reforms in the preceding two years affected by political uncertainty and changes.
The perceived transition challenges for the country’s authorities, as identified at the time of the Bank’s strategy, were to:
Improve the business environment, particularly for SMEs, reducing bureaucracy, improve corporate governance standards, and improve SME access to financing.
Reform the judiciary and step-up the fight against corruption.
Improve governance and strengthen the banking sector, including through consolidation.
Implement further regulatory reform and commercialisation in key utilities to attract strong investment flows to modernise relevant infrastructure.
The strategic priorities for the Bank were to:
Support strategic foreign investors and local export-oriented companies showing good corporate governance.
Channel more funding to SMEs through commercial banks and micro-lending institutions, including through the implementation of an EU/EBRD Western Balkans SME framework; (ii) Support for the strengthening and consolidation of the banking sector, and (iii) Expand the range of financial instruments offered to banks.
Support utility restructuring and privatisation through the implementation of the pre-privatisation agreement for the electricity company, (ii) support energy projects that fit the regional energy market development such as regional electricity and gas interconnections, (iii) promote road network rehabilitation in conjunction with restructuring of the road maintenance sector, and (iv) develop, where possible, municipal guaranteed water sector investments.
During the current strategy period, the EBRD signed the following projects. In 2004, the EBRD signed Migros Foodstores Skopje project (EUR 8.6 million) and signed a syndicated loan to Tutunska Banka (the total syndication of EUR 20 million including EUR 7 million from the EBRD) in the private sector and the ESM Pre-Privatisation Support Share Purchase Project (EUR 45 million) in the public sector. In 2005, the EBRD financed Mittal Steel Skopje Project (EUR 25 million) and opened another SME credit line with Investbanka (EUR 5 million) under the an EU/EBRD Western Balkans SME framework. Eurostandard Bank and Investbanka became new partner banks under the existing regional Trade Facilitation Program in 2005.
To prepare the new Strategy for FYR Macedonia, it would be useful for the Bank to receive comments on the business and economic environment, as it substantially affects the Bank’s operational policies and activities, particularly in the following areas:
1. Issues related to the investment climate
This would include issues concerning (i) the legal environment (the implementation and enforcement of laws), (ii) the regulatory environment for enterprises (such as issues related to taxation, trade protection, price-setting mechanisms, etc.), (iii) the functioning of public administration, and (iv) corporate governance and integrity. We seek your views on how serious these issues are for businesses and how you think the EBRD could help to overcome them.
2. Issues related to access to finance
This would include comments on the ease of access to funding by small and medium scale enterprises in particular, given the current state of development of the banking sector and the low level of financial intermediation. What are the main obstacles? What measures should be taken to enhance the banking sector? What type of projects should be supported by the EBRD?
3. Issues related to the social impact of EBRD investments
This would include issues concerning (i) micro, small and medium scale enterprises that enhance opportunities for entrepreneurship, job creation and social flexibility; (ii) investment in public utilities, with particular attention given to issues relating to social impact, tariff reform and affordability.
4. Issues related to the environmental impact of EBRD activities
This would include issues concerning environmental improvements and energy efficiency.
The Strategy provides guidance for EBRD activities in a country, identifying the main challenges which the Bank is best placed to confront. As such, the Strategy cannot address all of the development issues a country faces and necessarily must be selective in identifying issues where the Bank has the experience and ability to play a constructive role.
The Bank will take into account all comments received. A summary of these, with staff responses, will be posted on the Web site following the Board approval of the revised Strategy. The Country Strategy is, however, a Bank document and the responsibility for its contents remains with the Bank.
http://www.southeasteurope.org/subpage.php?sub_site=2&id=16859&head=hl
Made in Macedonia
