By Axel Reiserer
Businesses in Albania will have better access to finance thanks to a risk-sharing facility of up to €50 million(US$59.18million) signed by the European Bank for Reconstruction and Development (EBRD) and Raiffeisen Bank Albania, one of the largest banks in the country.
The facility will strengthen Raiffeisen Bank Albania’s capacity to meet the financial needs of selected clients, including corporates and small and medium-sized enterprises (SMEs), while keeping its risk-weighted assets under control.
Local banks’ ability to support the growth of successful corporates and SMEs, which are a pillar of the economies in the Western Balkans, is often constrained. The risk-sharing facility, which is also extended to three other Albanian banks, addresses this challenge and also helps participating banks to improve their portfolio’s risk management, risk diversification and capacity to manage more sophisticated risk profiles.
The EBRD is already partnering with Raiffeisen Bank Albania, through the Albanian Agribusiness Support Facility, to extend up to €35 million of financing to the underserved agribusiness sector.
To date, the EBRD has invested over €1.4 billion in 98 projects in Albania.