Since 2009, some 45 SMEs have benefited soft loans under the Italian-Albanian programme on the development of SMEs
TIRANA, April 26 – Albanian SMEs can now have easier access to borrowing from commercial banks operating in Albania thanks to a deal enabling their participation in the Albanian Guarantee Fund. The agreement which is part of the Italian-Albanian programme for the development of SMEs was signed last Tuesday by Albanian Economy Minister Nasip Naco and Italian Ambassador Saba D’Elia. Seven banks operating in Albania, the BKT, Raiffeissen, Credins, Veneto, Tirana Bank, ICB and NBG Bank will support the SMEs under the deal.
“The establishment of the Guarantee Fund will serve as an encouraging instrument for banks to ease lending to SMEs through the mechanism of the guaranteeing credit risk,” said minister Naco, appreciating the contribution of SMEs which account for 95 percent of the private sector in Albania.
Meanwhile, Italian Ambassador Saba D’Elia said the Guarantee Fund allowed the expansion of SMEs to increase their investments under soft loans. Some priority sectors can have their loans covered with a gurantee of up to 60 percent under the Guarantee Fund.
Since 2009, some 45 SMEs have benefited soft loans under the Italian-Albanian programme on the development of SMEs.
Funded by the Italian Development Cooperation with Euro 2.5 million, the Guarantee Fund is the second most important component of the joint development programme also offering credit lines and technical assistance at 25 million euros and 1.7 million euros, respectively.
Italy is supporting the development of Albanian small and medium-sized companies and ICT businesses under a 30 million euro soft loan programme to contribute to Albania’s economic growth.
SMEs and ICT companies are being supported under three ongoing projects worth 30.26 million euros which are being implemented by the Italian Development Cooperation.
The first project under the programme, a euro 27.5 million loan includes three main components; a 25 million euro soft loan for a credit line in favor of Albanian SMEs, a 2.5 million euros soft loan for the establishment of a Guarantee Fund on SMEs access to the credit system and a 1.7 million euro grant for technical assistance to the programme implementation.
Under this project, Albanian SMEs will have better access to financial services including diversification and reinforcement of banking services, increased capital availability for medium and long term loans, and initiate a process of institutional building in order to create a favourable environment for SMEs development and interaction between companies, public authorities and local consultants.
Italy continues remaining Albania’s top trade partner with around 50 percent of total exports and 30 percent of imports.
According to Italy’s Confindustria lobby group, some 300 Italian companies operate in Albania, mainly operating footwear and garment manufacturing.
