PBL ESM North Macedonia

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The FC funding loan is used to finance a PBL (policy-based loan) in the energy sector. The aim is to support North Macedonia in overcoming the energy crisis and the ambitious decarbonization of the sector. The policy matrix includes in particular the adoption of a new energy law (to implement EU requirements), the adjustment of the electricity price structure (introduction of consumption-based price differentiation) and regional market integration. In addition, the North Macedonian government is committed to decarbonizing the energy sector and specifically to phasing out coal by 2030. The project is part of the short-term loans of up to EUR 500 million for the Western Balkans that the German government announced in November 2022 as part of the Berlin Process and the ongoing energy crisis. The PBL was prepared jointly with the European Bank for Reconstruction and Development (EBRD). This provides a structurally separate loan directly to the public energy producer ESM. The FC loan is given directly to the Republic of North Macedonia, with the North Macedonian Ministry of Finance being the main partner.