3,600 farmers granted micro loans in H1

TIRANA, April 18 – Microfinance institutions continued to support Albanian farmers with loans even in the fits half of 2010 despite the banks tightening their lending criteria.
The Albanian Savings and Credit (ASC) Union said in a report some 3,600 farmers were granted micro loans, worth 1.3 billion lek (13 million dollars) in the first six months. The Unions total assets at the end of the first half of 2010 were worth 5.6 billion lek with a loan surplus of 4 billion lek.
Last year, the Union announced it had increased the loan portfolio to 3.9 billion lek (39 million USD) for 2010 to support farming activity.
Zana Konini, the executive director of the Albanian Savings and Credit Union said the Union had extended its activity in 200 villages in two other districts in Pogradec and Malesia e Madhe.
The Union says it will compete to reconfirm its position as the dominant financial institution in Albanian rural areas.
“The union will continue remaining focused on rural areas with the goal of offering financial services and promoting activities which bring revenues and increase the social and economic living standards in these areas,” said Konini.
Albanian Savings and Credit Union operates in 16 districts. Out of 1454 villages in total in these 16 districts, ASC Union covers 994 villages, or 68% of them. By the end of 2009, ASC Union had 28,235 members and 18,579 active clients in its SCA network.
ASC Union is a voluntary union of individual Savings and Credit Associations, created on 25 January 2002 on the basis of the law on Savings & Credit Associations and licensed by Bank of Albania. ASC Union is a product of the first microfinance program in Albania. Its mission is to support financially and technically the Savings and Credit Associations which are village financial institutions, created and managed by the members with the aim of promoting productive activities in rural areas.