USAID, the Government of Macedonia and the Private Sector Share Risks and Stimulate Economic Growth with more Accessible Loans for Agriculture

Agricultural Development Credit Authority (DCA) Agreement
Agricultural Development Credit Authority (DCA) Agreement
USAID Macedonia

For Immediate Release

Thursday, October 13, 2016

Today’s announcement of the Agricultural Development Credit Authority (DCA) Agreement is an outstanding example of a triangular partnership between the United States, the Republic of Macedonia and the private sector. This agreement introduces a loan garauntee mechanism that leverages the financing instruments of financial institutions to stimulate economic growth, while limiting the risks of commercial lending in the agriculture sector.The financial instituitons of Komercijalna Banka, Stopanska Banka Bitola, ProCredit Bank, Moznosti and FULM have partnered with USAID and the Ministry of Agriculture on this a ten-year loan portfolio guarantee agreement.

In his remarks,USAID Mission Director, James Stein stated that “The United States views the agriculture sector as a pillar of the Macedonian economy and as a key vehicle for sustained socio-economic growth. Continued support targeted towards this sector, we hope, will continue to create sustainable income for thousands of farmers and create stable jobs for thousands more.”

Mr. Stein also noted that “This type of partnership between the United States, Macedonia and the private sector, that supports Macedonia's efforts to develop a robust, job-creating economy, speaks exactly to the mission of the United States in Macedonia. Having mechanisms in place that stimulate lending to key sectors such as agriculture, is important progress towards sustained growth.”

The core objective of this agreement is to introduce a guarantee mechanism will help the partner financial institutions to reduce the collateral required when issuing agricultural loans to micro and small enterprises for capital investment and operational upgrades, reducing risk and stimulating lending to fill existing funding gaps in the agriculture sector. USAID and the Government of Macedonia will share risk with the financial institutions and gaurentee 50 percent of the value of the loan in case of default. The five partner financial institutions serve different segments of the market and are committed to significantly increase the number of loans to farmers and agribusinesses using their own capital.

Last year, USAID has successfully partnered with ProCredit, FULM and Moznosti and contributed close to 130 thousand dollars to a similar loan guarantee mechanism that led to the disbursement of 171 loans totaling approximately 1.3 million dollars, to farmers and food processors. This year, the Government of Macedonia is contributing an additional $406,000, and the inclusion of Komercijalna Banka and Stopanska Banka Bitola as partners in the new guarantee mechanism will diversify and increase the quantity of agricultural loans, allowing for the partial guarantee of a loan portfolio of up to 26 million dollars over the next 10 years.Interested loan applicants are advised to directly contact Komercijalna Banka, Stopanska Banka Bitola, ProCredit Bank, Moznosti and/or FULM for more information on agricultural loan offerings.


The American people, through USAID, have invested more than $580 million in Macedonia since 1993. USAID is working with the people of Macedonia to create jobs, strengthen democratic institutions and practices, enhance integrated education, and prepare students for the workforce. These initiatives, in partnership with the people of Macedonia, aim to improve the quality of life for all living in Macedonia. USAID provides economic and humanitarian assistance in more than 100 countries. For more information please visit and USAID FB page