The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

FYROM: Banks attract second wave of FDI

The financial services sector in the former Yugoslav Republic of Macedonia looks set to remain a magnet for foreign direct investment thanks to growing economic and political stability.

After attracting an initial wave of investment in the 1990s from such institutions as National Bank of Greece and Slovenia’s Nova Ljubljanska Banka, FYROM is now seeing a second wave of entrants in the banking sector as a result of accelerating economic growth and personal incomes as well as the prospect of Nato and EU membership. This year, GDP is forecast to come in at a record 6.5% level, and gross average monthly incomes have passed the €500 level, increasing the bankability of the country’s 2 million-strong population. Consequently, more than two-thirds of banking assets in FYROM are now controlled by foreign shareholders.

Among the latest recruits to the ranks of strategic investors in the banking sector is Icelandic financial group Milestone, which has acquired a 75.9% stake in small regional player Komercijalno Investiciona Banka for €4.4 million. Milestone has had strong ties to FYROM for some time, having previously invested in the pharmaceuticals and wine industries, and continues to explore new investment opportunities in selected industries. "There are ample opportunities in the Macedonian banking sector. With the acquisition of KIB, Milestone confirms its belief in the favourable investment climate in the sector," says Gudmundur Olason, the company’s chief executive.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree