WASHINGTON, D.C., July 14—The International
Finance Corporation (IFC) has approved its first four investments in the
Former Yugoslav Republic (FYR) of Macedonia for a total of US$11.1 million
equivalent. IFC, a member of the World Bank Group, is the largest multilateral
source of equity and loan financing for private sector projects in developing
countries.
FYR Macedonia became a member of IFC in February 1993. IFC's strategy for
Macedonia includes providing technical and financial assistance to newly
privatized companies and supporting capital markets development, foreign
currency earning projects and small business development. Macedonia is
also one of 16 countries selected for "Extending IFC's Reach"
program, which promotes private sector development through the support
of small and medium-sized enterprises (SMEs) in countries where foreign
investment has been limited. In addition to the projects listed below,
for the past two years, IFC has provided ongoing assistance to the government
on the privatization of Stopanska Banka, the country's largest bank.
A range of technical assistance and advisory services required to help
develop the four projects as prospective investments was provided through
trust funds supported by the governments of Austria, Denmark, Italy, Netherlands,
Norway, Sweden, Switzerland and the United Kingdom. This technical preparatory
work contributed significantly to IFC's capability to participate in these
projects and included feasibility studies, financial audits, management
advisory programs, market analyses and a review of Macedonia's legal system
with regard to enhancing private sector activities.
"IFC's recently approved investments in Macedonia confirm our continued
efforts to support the local private sector and help encourage additional
foreign investment in the country," said Mr. Harold Rosen, Director
of IFC's Europe I Department. "Moreover, as three of the four investments
are in SMEs, IFC is playing a vital role in promoting job creation and
distributing the benefits of economic development more fully."
US$5 Million for Grand Hotel
IFC has approved a US$5 million loan for Makedonija Turist A.D., one of
Macedonia's largest tourism companies. The financing will contribute to
the refurbishment and modernization of the Grand Hotel in Skopje. The hotel
will be operated under a franchise agreement with the U.S.-based Holiday
Inn. Upon completion, the Grand Hotel will be the first hotel in Skopje
offering international-standard quality and services.
US$1.5 Million for Textile Company
IFC is providing a US$1.5 million loan for Teteks A.D., a textile company
based in Tetovo. The financing will be used to modernize the company's
facilities and diversify production into lighter weight wool fabrics and
garments. The project will improve environmental standards and will also
include a management training and advisory program designed to expand product
development.
US$3.8 Million for Construction Materials Company
IFC has approved a loan of up to US$3.8 million for Nikol-Fert, a construction
materials company based in the village of Nikolic. The financing will be
used to integrate, diversify and expand Nikol-Fert's steel products. Currently,
the company produces steel meshes, trusses and ribbed wire. With IFC's
financing, Nikol-Fert will be able to purchase a steel rolling mill to
produce its input of steel wires and also to produce steel coils, profiles,
and rods, which are currently being imported. The products will be used
for both the domestic and regional markets.
US$0.8 Million for Glass Production
An investment of up to US$800,000 in IFC financing has been approved for
Masinomont Company, a small producer of standard and specialty machinery
for the glass working industry. The financing will be used to relocate
the firm's operations to a new manufacturing facility. Masinomont Company,
a small family company founded in 1988, produces standard and specialty
machinery for the glass working industry and special flat shaped glass.
IFC, a member of the World Bank Group, is the largest multilateral source
of equity and loan financing for private sector projects in developing
countries.
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