BojcevaTerzijan from the National Bank: The growth of green finance-support to the energy transition of the economy

Skopje, 28 May 2023

The Director of the Monetary Policy, Research and Statistics Sector at the National Bank Sultanija Bojceva Terzijan took part in the business forum Economic Perspectives for Predictable Development organized by the Marili agency. The topics discussed at the business forum were related to the sustainable economy, especially energy challenges as new opportunities in the economy, as well as policies and models for the sustainable development of agriculture and food industry.

In her presentation, titled: What are the forecasts for the Macedonian economy in the upcoming period? - overview of the central bank's spring macroeconomic forecasts, the Director Bojceva Terzijan referred to the current situation as well as to the economic forecast for this year in the medium run, in line with the latest macroeconomic forecasts of the National Bank in May. In the context of the energy challenges, Bojceva Terzijan highlighted the impact of the energy crisis on the external position of the country, as well as on the inflation in 2022. In the following period, taking into account the expectations for significant reduction of the world energy and food prices, significant decrease in the trade deficit and price pressure is possible i.e. their stabilization at the pre-crisis levels. Therefore, encouraging green finances is worthy of attention, as part of our commitments to the green transition. "By designing green financial products and channeling the resources into green investments, the financial sector can provide significant support to the energy transition of the economy", pointed out Bojceva Terzijan.

Currently, the share of green finance is relatively low, but banks put greater emphasis on green loans, as a significant future potential for financing environmental projects and sustainable growth in general. The National Bank established a regular system for collecting more detailed data on green finance. "Data submitted by banks on approved green financing loans show that the green lending registered a steady growth, and at the end of 2022 increased by 114%, compared to 2019. At the end of 2022, the total amount of green loans equaled Euro 250 million. They account for 3.6% of total loans, yet their share is constantly increasing. Green loans are granted to both companies and households, yet companies prevail", pointed out the Director Bojceva Terzijan.

The National Bank has taken several actions to encourage green financing over the past few years. " A Decision amending the Decision on reserve requirement was adopted within the monetary measures, which encourages lending to projects related to domestic production of electricity from renewable sources, and a Strategy for the National Bank activities in the area of climate risk management is also being prepared", said Bojceva Terzijan.

The business forum is part of the event The Most Successful Women Managers, which has been held for 27 years in a row and aims to raise the public awareness of the contribution women make and can make in the development of the society and economy.