Green loans in North Macedonia's banking sector up 14.9% y/y in 2Q24

The growth of green loans in North Macedonia’s commercial banks continued in the second quarter of 2024, with an annual increase of 14.9% or by MKD2.6bn (€42.3mn), the central bank said on August 27.

Since the end of 2019, when the data collection began, green loans which fund environmentally sustainable projects, have surged by 2.8 times, reaching MKD20.4bn by mid-2024.

Of this amount, MKD19.4bn was allocated to companies, while MKD1bn was extended to households. Despite this growth, green loans remain a modest portion of the total loan portfolio, rising from 2.2% in 2019 to 4.5% by the second quarter of 2024.

The National Bank has prioritised climate change awareness and the promotion of green financing as part of its long-term strategy. Through various initiatives, the central bank continues to encourage sustainable investment, aiming to support the green transition in North Macedonia’s economy.