MACEDONIA COMPETITIVENESS PROJECT Using Finance to Drive Systematic Private Sector Growth June 16, 2009 Kiev

Our mission: “Increase competitiveness of Macedonian economy and contribute measurably to significant new investment, job creation and export value” legitimate prerequisite: ACCESS TO FINANCE MACEDONIA COMPETITIVENESS PROJECT

Demand side (businesses) Access to finance major constraint for business expansion  Poor corporate finance skills of the managers  Inadequate investment and business planning  Asymmetric communication between banks and businesses  Lack of innovative financial services (obsolete capital market) Supply Side (FI’s) Limited supply of bankable projects by businesses issues

Immediate Impact Remedies “Pret-a-utilizes”  Pool of Financial Facilitators “the CFO you never had”  Bankable projects to FI’s “thrust for business expansion”  Match Making Events “Promote, educate & network”  Facilitating equity finance “educate & facilitate direct transactions” Systematic Change “the MCP LEGACY”  Companies Grow “ from medium to large”  CFO position institutionalized “companies start hiring professionals”  Professional Org. of FF “Association of Financial Advisors”  New forms of capital “Venture Cap., Bus. Angels, Corp. Bonds”

Thank you USAID COMPETITIVENESS PROJECT Orce Nikolov St. 63, 1000 Skopje Tel.: +389 (0) (0)