EBRD provides euro10 million co-financing to leading Albanian bank

TIRANA, Dec 24 – The EBRD provided euro10 million in co-financing to Albania’s third largest bank, Banka Kombetare Tregtare (BKT) to enable BKT to meet the growing needs of Albanian companies for larger loans and longer maturities and allow more companies to access medium term financing.
The facility is the first in Albania of a new type of EBRD instrument being made available to the Western Balkans region, the Medium-Sized Loan Co-Financing Facility (MCFF). This initiative aims to stimulate market activity by using a streamlined approach to mobilizing more investment for viable private companies and encouraging economic reform, while still respecting the principles of sound banking.
The MCFF is available to banks with strong credit policies and procedures that are committed to continuing supporting the local corporate clients. The euro10 million co-financing facility to BKT will allow this leading Albanian bank to co-finance, with the EBRD, bigger sub-loans to its clients and share with the EBRD any risks involved with such lending.
The EBRD is delighted to make this co-financing available to BKT, which is one of EBRD’s long-standing partners in the country and has achieved solid growth since its privatization in 2000. The EBRD finance will help address the financing gap in the market and provide support to the best-qualified growing private companies in Albania, which constitute a dynamic segment of the private sector and play a crucial role in the transition process, said Dan Berg, head of the EBRD’s Office in Albania.
Seyhan Pencapligil, BKT’s CEO and Board Member said: “The co-financing facility signifies BKT’s commitment to the Albanian corporate sector. The additional lending capacity means BKT will be able to serve the growing appetite of the corporate sector for larger loans and longer maturities.”
In addition, by supporting companies which apply high standards of corporate governance and business conduct, the EBRD promotes sound business standards and corporate practice in Albania, whose application by local companies will facilitate their access to finance.
This is the first MCFF project in the Western Balkans and it allows the EBRD not only to expand its cooperation with BKT but also to roll out the facility in the region. More banks in Albania and the region are expected to join in 2009.