Decision on the methodology for credit risk management by the Macedonian Bank for Development Promotion

NATIONAL BANK OF THE REPUBLIC OF MACEDONIA
Pursuant to Article 47 paragraph 1 item 6 of the Law on the National Bank of the Republic of Macedonia (Official Gazette of the Republic of Macedonia No. 158/10, 123/12, 43/14, 153/15, 6/16 and 83/18), Article 6 paragraph 1 and Article 68 paragraph 1 item 2 of the Banking Law (Official Gazette of the Republic of Macedonia No. 67/07, 90/09, 67/10, 26/13, 15/15, 153/15 and 190/16), Article 5 paragraph 1 and Article 14 paragraph 6 of the Law on the Macedonian Bank for Development Promotion (Official Gazette of the Republic of Macedonia No. 105/09), the National Bank of the Republic of Macedonia Council adopted the following DECISION on the methodology for credit risk management by the Macedonian Bank for Development Promotion (Official Gazette of the Republic of Macedonia No. 241/18)
I. GENERAL PROVISIONS

1. This Decision lays down the methodology for credit risk management by the
   Macedonian Bank for Development Promotion (hereinafter: the MBPR).
   The methodology shall include classification, the method of determining of impairment and the amount of special reserve (expected credit loss), supervisory standards for overdue claims and the scope and elements of credit risk management. The terms used in this Decision shall have the same meaning as in the Decision on the methodology for credit risk management (Official Gazette of the Republic of Macedonia No. 149/18).
   II. CLASSIFICATION OF CREDIT EXPOSURE
2. The MBPR shall classify credit risk exposure in the manner and according to the
   criteria set out in section II. of the Decision on the methodology for credit risk management. Notwithstanding paragraph 1 of this item, the MBPR shall not apply the provisions of item 9 subitem 9.4., indents 4, 5 and 6 of the Decision on the methodology for credit risk management, in case of credit insurance and purchase of claims (factoring and forfeiting) based on export. Notwithstanding paragraph 1 of this item, the MBPR shall appraise the creditworthiness of non-financial legal entity - non-resident at least once every twelve months, or more often if the criteria for increasing credit risk are met, as defined in the internal acts in accordance with item 51 subitem 51.3. of the Decision on the methodology for credit risk management.

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III. CALCULATING IMPAIRMENT AND SPECIAL RESERVE
3. The MBPR shall be required to calculate impairment and special reserve on the
basis of the determined expected credit loss on an individual and/or on a collective basis, in accordance with the provisions of section III. of the Decision on the methodology for credit risk management. Notwithstanding paragraph 1 of this item, the insurance policies for claims issued by the MBPR shall not be included in a first-class collateral instrument referred to in item 24 of the Decision on the methodology for credit risk management.
IV. OTHER PROVISIONS
4. The provisions of sections IV., V. and VI. and items 59 and 61 of section VII. of
the Decision on the methodology for credit risk management shall apply to the MBPR.
V. CLOSING PROVISIONS
5. This Decision shall enter into force on the eighth day after its publication in the
Official Gazette of the Republic of Macedonia and shall start being implemented on 1 July 2019.
6. The implementation of this Decision shall supersede the Decision on the
methodology for determining impairment and special reserve by the Macedonian Bank for Development Promotion (Official Gazette of the Republic of Macedonia No. 121/13). D. No. 02-15/XIX-2/2018 Anita Angelovska Bezhoska Governor and Chairperson 20 December 2018 of the Council of the National Bank Skopje of the Republic of Macedonia