By Joel Cela
Grant incentives worth up to 10 per cent of the loan funded by Denmark, as well as Luxembourg, Norway, Switzerland and the United States of America
The European Bank for Reconstruction and Development (EBRD) is increasing access to finance for micro, small and medium-sized businesses (MSMEs) in Albania through a partnership with ProCredit Bank Albania.
The Bank is lending up to €6 million(US$6.33million) under the SME Reboot Programme, helping local firms to go beyond business as usual, backing their investments in green technologies and introducing new working standards.
These investments aim to boost the competitiveness of Albanian MSMEs in the domestic market and abroad by helping them to comply with European Union and other international standards.
In addition to finance, the SME Reboot Programme will provide assistance with the implementation, marketing and monitoring of the programme. This technical cooperation package is being supported by Denmark, as well as receiving support from Switzerland through the Small Business Impact Fund (SBIF).
Furthermore, grant incentives worth up to 10 per cent of the loan will be available to local MSMEs to make their investments more affordable. The grants for the programme on a regional level are being funded by Luxembourg, Norway, Switzerland and the United States through the SBIF, as well as Denmark.
The EBRD’s Head of Albania, Ekaterina Solovova, said: “We are pleased to continue supporting local businesses in Albania through our longstanding partnership with ProCredit Bank. This programme will strengthen the competitiveness of Albanian MSMEs in both domestic and international markets, while driving the transition to a green economy and fostering sustainable economic growth.”
CEO of ProCredit Bank, Mirsad Haliti said: “We are grateful to the EBRD for their ongoing support, which is empowering Albanian MSMEs to grow sustainably and gain a competitive edge through green technology investments. At ProCredit Bank, we remain committed to supporting businesses that contribute to a stronger and more resilient Albanian economy.”
The SME Reboot Programme is part of the Bank’s efforts to support small firms’ recovery from recent macroeconomic challenges.
At least 70 per cent of this programme’s funding will be allocated to MSMEs to support investment in energy-saving and green technologies, helping them to reduce their carbon footprint. The remainder will support investment in automation, increasing productivity, product quality and safety.
Primarily focused on SME lending, ProCredit Bank Albania is a leading expert in green lending and the agribusiness sector in Albania. An EBRD partner since 2016, it has successfully implemented several SME credit lines.
To date, the EBRD has invested over €2.2 billion in Albania through 155 projects.
*The donors contributing to the EBRD Small Business Impact Fund are Italy, Ireland, South Korea, Luxembourg, Norway, the United States, Switzerland, Sweden, Japan and the TaiwanBusiness – EBRD Technical Cooperation Fund.
