The undeveloped rural capital market in the Republic of Macedonia is constrained by an urban–rural
development gap with limited capacities for rural development and imperfections in the rural capital
market. Among the most striking hindrances are the illegal status of a large share of agricultural
buildings and other real estate in rural areas, particularly, on the individual family farms that prevail in
the country, and the insufficient knowledge and abilities of individual farmers in applying for credit.
National, European Union and other donor funds are being used to improve knowledge, skills and other
human resources, and to address the illegal status of buildings and facilities. During the most recent
years, government support for agricultural, rural and regional development has been introduced to
promote good agricultural practices, production and economic activity in rural areas. The elimination of
imperfections and improvements to the functioning of the capital market – making access to credit and
funds easier, especially, for small-scale family farms and for rural development are seen as measures
contributing to agriculture and more balanced rural and regional development.