State Audit Office: 14.2 billion denars directed to domestic economic development

The State Audit Office reviewed the compliance of a credit line meant to finance investments and development of private trading companies under the Borrowing Agreement from the Budget of the Republic of North Macedonia for loans approved between January 2025 and February 2026.

The credit line totals 250 million euros in denar equivalent and is implemented through cooperation between the Government, the Ministry of Finance and the Development Bank of North Macedonia AD Skopje, with twelve commercial banks acting as participating lenders.

Audit conclusion and support conditions

The audit found that "reasonable assurance was obtained to express a positive conclusion that the activities of the Development Bank of North Macedonia AD Skopje, in relation to the legal framework and the management of funds from this credit line, are in all material respects in accordance with the applied relevant legislative and sub-legislative regulation, internal acts and contracts." The support was provided on favourable commercial terms: maximum up to 10 million euros per beneficiary; repayment term up to 15 years including a grace period up to 3 years; a fixed interest rate of 1.95% with no additional approval or management fees; and a minimum own contribution by companies of 20% of the investment value.

As part of the audit sample, 123 development projects worth 7.334.103 thousand denars were examined — representing 52% of the total funds withdrawn up to February 2026, which amount to 14.080.298 thousand denars. The investment cycle continued in March–April 2026, when financing was approved for an additional 15 projects in the amount of 167.638 thousand denars.

Overall, 767 projects were approved with a combined value of 14.256.936 thousand denars. By company size, small enterprises lead in project count with 455 approved projects (59% share) totaling 3.565.574 thousand denars (25% of the financed amount). Large entities received financing for 94 projects (12% of the projects) amounting to 4.720.384 thousand denars (33% of value). Medium-sized firms were approved for 171 projects (22%) and 4.606.378 thousand denars (32%), while micro entities account for 47 projects and 1.364.600 thousand denars (10%).

The sectoral distribution indicates a development-oriented focus: domestic manufacturing leads with 281 approved projects worth 6.292.415 thousand denars (44% of the credit pool). Trade absorbed 3.499.227 thousand denars through 194 projects (25%), transport 1.451.457 thousand denars via 129 projects (10%), construction 988.498 thousand denars across 63 projects (7%), hospitality and hotels 852.327 thousand denars in 37 projects (6%), and other economic activities 1.173.012 thousand denars across 63 projects (8%).

Analyzed by investment purpose, companies demonstrated a long-term development orientation: 46% of funds (6.624.874 thousand denars) went to construction of buildings, 39% (5.478.364 thousand denars) to modern equipment, 11% (1.599.280 thousand denars) to transition to renewable energy sources, and the remaining 4% (545.418 thousand denars) to renewal of transport vehicles.

Photo: press material from the event