USAID ends 5-year loan guarantee program with BKT

TIRANA, Feb. 23 – USAID’s Small Business Credit and Assistance project (SBCA) and Banka Kombetare Tregtare (BKT) presented the performance and results of the five-year, $750,000 loan guarantee program for lending to Albanian small and medium enterprises in the agribusiness and small manufacturing sectors. Through the guarantee fund, BKT leveraged almost 184 loans disbursing a total $5.3 million to SMEs throughout Albania. These small business loans had a very low rate of default. The USAID Mission Director, Mr. Edward T. Landau, and BKT Chief Executive Officer and Boardmember, Mr. Seyhan Pencapligil, gave opening remarks. A principal objective of the United States development assistance to Albania is to promote sustained and broad-based economic growth and poverty reduction. Integral to this goal is strengthening the competitive capacity and productivity of private enterprises. Among other activities, USAID’s Economic Growth program helps businesses gain greater access to credit. In 2002, USAID in partnership with BKT established the loan guarantee to stimulate lending to businesses working in the agricultural and small manufacturing sector of Albania. The success of the guarantee program was due in large part to the partnership with BKT, the second largest bank in Albania, and recipient of the 2006 “Bank of the Year” award by Banker magazine. (Tirana Times Staff)