The 10-million euro fund, which government aims at increasing in the coming years, will be given to textile businesses in soft loans in exchange for creating jobs.
TIRANA, May 21 – Government has made available a 10 million euro fund to support businesses which can generate employment in a short-term period. The initiative was announced last weekend by Economy Minister Dritan Prifi during a visit to the premises of some textile companies in the northern city of Shkodra. The 10-million euro fund, which government aims at increasing in the coming years, will be given to textile businesses in soft loans in exchange for creating jobs.
“We have a fund of at least 10 million euros this year to use for these kinds of businesses in soft loans whose annual interest rate is not more than four or five percent, half the interest rate offered by banks,” said Minister Prifti.
He called on textile businesses which need new equipment and technology to address the Economy Ministry for support.
Last year’s fund on supporting businesses to create new jobs was 5 million euros.
Visiting a shoe company in Shkodra, Prifti said that government saw these businesses as the best way to have a quick impact on creating more jobs in this time of global crisis.
Government also aims at increasing the number of vocational training high schools to provide qualified professionals for the textile industry which is mainly controlled by foreign investors from Italy, Greece and Germany. The number of vocational high schools is expected to increase to 40 percent in the next few years, up from 20 percent of the total high schools currently.
Textile and shoe manufacturing companies employ about 10 percent of the workforce, and are one of Albania’s main exporters.
Unemployment situation
Unemployment rate in Albania during the last quarter of 2009 climbed to 13.75 percent, up from 12.68 percent at the end of 2008, according to latest data by the Institute of Statistics (INSTAT). However, the unemployment rate is estimated to be far bigger considering that data published by INSTAT include only people who register themselves as jobless in employment offices. The unemployed people in rural areas are not taken into consideration because of being considered self-employed.
A central bank survey has recently shown that consumer confidence on employment opportunities remains pessimistic.
About 46 percent of the respondents expect the unemployment rate to rise in coming months and only 16.6 percent of those surveyed think there will be less unemployment than now in the near future.
