The funding is part of an agreement between Albania and German development bank KfW and FEFAD foundation’s Promotion of SMEs Program.
TIRANA, Feb. 11 – A German 2.6 million euro soft loan that helps to enable and facilitate lending for medium and small private enterprises in Albania has been approved by the Albanian Parliament’s Economy Committee.
The funding is part of an agreement between Albania and German development bank KfW. It is also part of FEFAD foundation’s Promotion of SMEs Program, which will contribute to income generation for certain social groups, as well as deepening and expansion local financing sector.
Small and medium private companies, microcredit institutions in all areas, both urban and rural, including agricultural societies will benefit, according to the Ministry of Finance which will administer the money.
KfW will transfer the money to Albania’s government represented by the sums of 2.6 million euros for the loans and a grant of 210,000 euros for administrative purposes.
It’s a 40-year loan with 0.75 percent interest per year.
The German government has so far committed a total of 850 million euros for investment projects throughout Albania, of which more than half are implemented by the KfW.
