EBRD boosts support to Albania’s agribusiness sector
Under this new framework, the EBRD aims to enhance access to finance for local agribusinesses by providing dedicated credit lines to Albanian banks and microfinance institutions or by sharing with them the risk of lending to the agribusiness sector. The government of Albania is providing first-loss cover that will mitigate the risks of lending.
Agriculture is a vital sector of Albania’s economy. It provides employment for almost 50 per cent of the population in rural areas and accounts for around 20 per cent of the country’s GDP. However, the sector remains underserviced by financial institutions, with loans to agribusiness accounting for only 2 per cent of total lending to the economy.
The Albania Agribusiness Support Facility will address this challenge by enhancing access to finance across the country. The framework will also include technical assistance for capacity-building and training through the EBRD Small Business Support programme.
The EBRD will continue to support the Albanian authorities with specific activities in favour of sectoral reform initiatives in coordination with other development partners. ■