IFC and NLB Loans Strengthen FYR Macedonia’s Banking Sector to Boost Economy

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The FINANCIAL — IFC, a member of the World Bank Group, is providing a €10 million loan to NLB Tutunska banka, FYR Macedonia’s third largest bank, to encourage its growth and strengthen the country’s banking sector. NLB Ljubljana, the parent bank of NLB Tutunska banka, is providing an additional €11 million loan to the bank.   

The subordinated loans qualify as Tier II capital and are part of IFC’s strategy to support major regional banks. They also highlight IFC and NLB’s commitment to encouraging economic growth in the Western Balkans, according to IFC.

“This transaction further strengthens our strategic partnership with IFC,” said Gjorgji Janchevski, President of the Management Board of NLB Tutunska banka. “The new loans will support our capital position and help us expand our services.”

Archibald Kremser, Member of the Management Board and CFO of NLB Group, said: “These transactions demonstrate confidence in NLB Tutunska banka and assure the bank’s further progress. IFC’s involvement highlights the bank’s ability to raise funds in international capital markets, and brings high standards of corporate governance into the funding relationships of our Macedonian bank.”

IFC provided a €25 million loan to NLB Tutunska banka in early 2010, enabling the bank to extend more loans to small and medium enterprises in the country. IFC also provided a €3 million trade finance guarantee facility to support the bank’s clients, small and mid-sized importers and exporters.

“We are working with NLB Tutunska banka to strengthen the banking system in FYR Macedonia and ensure that finance continues to flow to the businesses and people that need it,” said Thomas Lubeck, IFC Regional Manager for the Western Balkans. “IFC’s loan will support the future growth of the bank.”

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