Public Call No. 1, Interest-free working capital credit line for companies affected by the energy and economic crisis

05/05/2022

Pursuant to the Law on the Development Bank of North Macedonia (Official Gazette of the Republic of Macedonia No. 105/2009 and Official Gazette of the Republic of North Macedonia No. 77/21), the Agreement for the Administration of a Working Capital Credit Line to support companies affected by the energy and economic crisis No. 13-3579/1 of 14.04.2022, the Development Bank of North Macedonia AD Skopje hereby announces:

 
PUBLIC CALL No.1

for submission of a loan application for direct lending to micro, small and medium-sized companies, as well as sole proprietors and artisans (who pay taxes on real income) by an interest-free, working capital credit line for companies affected by the energy and economic crisis

 

I. SUBJECT OF THE PUBLIC CALL

The subject of this public call is the submission of loan applications for an interest-free working capital credit line for companies affected by the energy and economic crisis for direct support of micro, small and medium-sized companies, sole proprietors and artisans who pay real income tax and are registered in the Republic of North Macedonia.

The funds from which the interest-free, working capital credit line for companies affected by the energy and economic crisis will be implemented, have been provided in the amount of MKD 310,000,000.

II. CONDITIONS FOR APPROVAL OF FUNDS

The funds from the interest-free, working capital credit line for companies affected by the energy and economic crisis will be available under the following conditions:

Purpose of the loan:

Working capital to support companies affected by the energy and economic crisis.

Loan amount:
·       minimum amount: MKD 185,000,
·       maximum amount: MKD 3,000,000.
 
Disbursement of the loan:

The approved loan is paid directly to the loan user according to the instructions specified in the loan application.

Repayment terms:

Loans from the interest-free, working capital credit line for companies affected by the energy and economic crisis will be approved, as follows:

·       repayment period of 12 months with a grace period of 6 months included, and

·       repayment period of 18 months with a grace period of 6 months included.

The repayment of the loan by the loan user will be carried out in quarterly repayment periods.

 
Approval criteria:
Qualified borrowers are:

Micro, small and medium-sized companies (according to the Current Financial Status), as well as sole proprietors and artisans (who pay taxes on real income) active in a class of activity from the List of acceptable classes of activity for financing (the activity is determined according to the priority activity specified in the Current Financial Status).

 
List of acceptable classes of activities:
 

Code    Name

01.11   Cultivation of cereals (apart from rice), legumes, and oilseeds

01.12   Cultivation of rice

01.13   Cultivation of vegetables, quinces and watermelons, root and turnip vegetables

01.14   Cultivation of sugar cane
01.21   Cultivation of grapes
01.24   Cultivation of apple and stone fruit
01.30   Cultivation of planting material
01.41   Breeding of dairy cows
01.42   Breeding of other cattle and domestic buffaloes
01.45   Breeding of sheep and goats
01.46   Pig farming
01.47   Poultry farming
10.11   Processing and canning of meat
10.12   Processing and canning of poultry meat
10.13   Production of animal and poultry meat
10.31   Processing and canning of potatoes
10.32   Production of juice and vegetables

10.39   Other processing and canning of fruits and vegetables

10.41   Production of oils and fats
10.42   Production of margarine and similar edible fats
10.51   Milk processing and cheese production
10.52   Ice cream production
10.61   Production of mill products
10.62   Production of starch and starch products

10.71   Production of fresh bread, sweets (cakes, cookies), and biscuits

10.72   Production of toast and biscuits, production of canned sweets and pastries

10.73   Production of macaroni, gnocchi, couscous, and similar pasta

10.81   Sugar production

10.82   Production of cocoa, chocolates, and confectionery products

11.02   Production of wine from grapes
 

Loan applicants must meet the following criteria:

·       Registered in the Republic of North Macedonia,

·       At least 51% privately owned,

·       They have no outstanding obligations to the state, as evidenced by a certificate from the Public Revenue Office not older than 31.12.2021,

·       There are no proceedings of bankruptcy or liquidation,

·       They have submitted an annual account in the Central Register for 2021, regardless of the months of operation,

·       They have registered real owners in the Register of Real Owners at the Central Registry of the RNM if they are taxpayers (Current Financial Status of the real owner, Certificate real owner),

·       According to the financial reports of the last fiscal year, there is capital and reserves (stated in the Balance Sheet, AOP code 65) not less than 30% of the amount of the requested loan (this criterion does not apply to artisans and sole proprietors),

·       According to the data from the NBRNM credit register as of 31.01.2022, all classifications are better or equal to B (average risk calculations are being done) or have no credit exposure. An exception is if the total credit exposure of banks to a particular client is less than MKD 10,000,

·       They are not beneficiaries of a loan from the "Covid 3" and "Covid 4" credit line (everyone who has an agreement with DBNM for this credit line is considered a user),

·       At the time of submission of the loan application, they have no outstanding obligations greater than MKD 10,000, as users of the "Covid 1" and "Covid 2" credit lines.

 

Grant component

For each borrower, a grant component is provided, which consists of the discharge of the debt on the basis of the principal, provided that there is no delay in servicing the loan for more than 60 days and for amounts greater than MKD 10,000, namely:

·       for loans with a repayment period of 12 months with a grace period of 6 months included, a grant of 20% of the principal is provided, and

·       for loans with a repayment period of 18 months with a grace period of 6 months included, a grant of 10% of the principal is provided.

Premature repayment of the loan by the borrower excludes the right to a grant in its entirety.

The discharge of the debt has been completed since the last installments of the loan.

 
Interest rates for borrowers

The interest rate for borrowers is set at 0% per annum.

DBNM does not charge a management fee from the borrower for processing loan applications.

 
Collateral

The loan is secured by a bill from the borrower guaranteed by one of the owners of the borrower, with a bill regulating the rights and obligations of the bill in the form of a notarial deed with an enforcement clause.

The costs of establishing the security are borne by the borrower.

 
Other

On behalf and for the account of the Government of the Republic of North Macedonia and upon approval of the loan application, DBNM will conclude a loan agreement with the borrower.

 

III. ENTITIES ENTITLED TO SUBMITTING A LOAN APPLICATION

Micro, small and medium-sized enterprises (according to the Current Financial Status), sole proprietors, and artisans who pay real income tax and are registered in the Republic of North Macedonia in accordance with the positive regulations and have core capital in private ownership of legal and natural persons are entitled to submit an application of at least 51%, according to the list of acceptable classes of activity for financing (the activity is determined according to the current priority).

The loan applicant may check their classification by having an insight into the Current Financial Status.

 

IV. MANDATORY DOCUMENTATION

The document which the loan application cannot be processed without is the application from the loan applicant, which is a form published on the Bank's website and which contains the basic information of the applicant, the requested loan amount, payment instructions, and other information.

Mandatory documentation that the loan applicant is obliged to submit to the public call is the following:

1.     Loan application (form published on the bank's website),

2.     Application for client registration (form published on the bank's website),

3.     Statement on related person/entities (form published on the bank's website),

4.     Statement on holders of the public function (form published on the bank's website),

5.     Credit exposure verification statement (form published on the bank's website),

6.     CS form (form for certified signature),

7.     Proof of not having outstanding taxes and contributions to the state – Certificate from the Public Revenue Office (not older than 31.12.2021),

8.     Current Financial Status not older than 6 months (from the Central Registry of the RNM),

9.     Current Financial Status of the real owner's database not older than 6 months (from the Central Registry of the RNM),

10. Annual financial statements (as of 31.12.2021) (from the Central Registry of the RNM),

11. Certificate of bankruptcy and Certificate of liquidation - Proof that no bankruptcy or liquidation procedure has been initiated (from the Central Registry of the RNM) not older than 6 months.

 

V. DECISION CRITERIA FOR ALLOCATION OF FUNDS

A qualified borrower who meets the criteria for loan approval on a "FIRST COME, FIRST SERVED" basis.

Loan applications are processed chronologically as they are received on: eekriza@mbdp.com.mk.

 

VI. PREPARATION AND SUBMISSION OF A LOAN APPLICATION

The loan application with complete documentation is submitted exclusively electronically, to the following e-mail address: eekriza@mbdp.com.mk.

Submitted loan applications are distributed automatically, which is why it is necessary to respect the following rules when applying:

·       The Subject of the e-mail that is submitted, the name of the company, city, and legal form in Latin letters, for example, Vardar Berovo DOOEL should be stated.

·       If the loan application is submitted in several messages, the Subject of the messages must be the same as the first message without additional signs and additions, such as: 1, 2, part two, covid4, covid, etc.

·       Attachments should not exceed 8MB in size and must be submitted in an attachment as a .pdf, .zip or .rar format.

The loan application is a mandatory document and the other submitted documentation will not be considered until the application is submitted. The loan application must be fully completed.

The loan application and accompanying documents, whose forms are prescribed by the bank, are recommended to be completed electronically, on a computer, or if possible, to be completed in legible letters.

Loan applications may be signed manually or with a digital certificate.

The loan applicant may submit only one loan application.
 
 VII. GENERAL PROVISIONS

The loan applications for the public call are submitted for 15 days, starting on May 11, 2022, at 09:00 a.m. until May 26, 2022, at 09:00 a.m.

The processing of the received loan applications will begin after the closing of the public call.

Documents submitted to the public call are non-returnable.

Inadequate loan applications of unqualified loan users shall not be considered.

Incomplete loan applications shall not be considered until they are complete.

Documents received without a loan application (form on the bank's website) will not be processed until the loan application is submitted.

The bank bears no expenses incurred in the preparation, compilation, and delivery of loan applications, so the participant of the public call has no right to reimbursement of any expenses based on participation in this public call.

The bank will notify the loan applicants who have been granted a loan based on a submitted application, to the electronic address specified in the entity's Current Financial Status.

The bank will notify loan applicants whose loan applications have been rejected, with the reason for rejection, at the electronic address specified in the subject's Current Financial Status certificate.

The bank shall not individually notify loan applicants whose loan applications have been received after the funds have been exhausted.

The Bank will publish on its website about the exhaustion of funds upon the Public Call.

All information and forms related to the public call can be found on the bank's website www.mbdp.com.mk.