The European Investment Bank (EIB), the European Union's financing institution and the government of the FYR of Macedonia have signed a Framework Agreement which enables the country to access the Bank's lending resources to support sound investment in a large spectrum of productive sectors, including transports, energy, environmental protection, telecommunications, as well as industry, tourism and services.

After a Financial Protocol attached to the co-operation and Transport Agreement between the European Commission and FYR of Macedonia came into force in January 1998, the EIB mainly supported the transportation sector of FYR of Macedonia, with a total of 130 m EUR for two road projects(1). The Financial Protocol foresees EIB lending of up to 150 m EUR until 31 December 2000, and loans for transport sector projects benefit from a 2% interest rate subsidy.

The Framework Agreement was signed in Skopje today by Panagiotis Gennimatas, Vice President of the EIB, and FYR of Macedonia's Finance Minister, Nikola Gruevski. During his visit to Skopje, Mr Gennimatas also held meetings with Prime Minister Lyubco Georgievski, the Vice Prime Minister in charge of the relations with the European Union Mr. Vasil Turpukovski and Aleksandar Dimitrov, Minister of Foreign Affairs.

"The Bank appreciates that FYR of Macedonia is able to well prepare and rapidly implement very important infrastructure investment", Mr Gennimatas said at the signing ceremony. "Today's agreement puts FYR of Macedonia in the same position as all pre-accession countries of Central and Eastern Europe in terms of possibility to access the Bank's lending resources, and opens the way for EIB's support of new top priority investments in the country, such as the power transmission line between Dubrovo and Radomiv, in Bulgaria, and the modernisation of Skopje airport."

The European Investment Bank, the European Union's long-term lending institution, finances capital investment furthering EU integration, in particular: regional development; trans- European networks in transport, telecoms and energy; industrial competitiveness and integration; SMEs; environmental protection; and energy security. Outside the Union, the EIB operates within the framework of the EU's co-operation external policy.The Bank is the largest source of investment financing in Central and Eastern Europe and the Balkan regions. Much of this finance has gone for major infrastructure to develop communication networks and linking them up with the trans-European networks (TENs) of the Union. In FYR of Macedonia, the EIB started its activity in 1977, advancing 8 loans until 1990, covering roads, rail and electricity projects. Since operations were resumed in 1998, a total of 130 m EUR have been advanced for two road projects.


(1) The North-South Corridor - section Stobi/Demir Kapija and the East-West Corridor - section Skopje/Tetovo; the completion of the North-South Corridor - section Demir Kapija/Gevgelija and the construction of the Skopje By Pass.