EBRD and EU under €20 million risk-sharing facility with ProCredit Bank Albania
TIRANA (Albania), April 12 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) has said that in collaboration with the European Union (EU) and the Albanian government, it is engaging a risk-sharing facility up to €20 million ($21.7 million) to ProCredit Bank Albania for on-lending to companies in the agro-industry and tourism sectors.
The facility includes a 10% investment grant, to be received by sub-borrowers after the completion of investments, funded by the Albanian government and the EU, the EBRD said in a statement on Monday.
In addition, the facility will also benefit from a government-backed first loss hedging mechanism, the EBRD added.
The funds will be provided through the Albania Agribusiness and Tourism Support Facility (AATSF), a framework aimed at improving access to finance for small and medium-sized enterprises (SMEs), in partnership with a number of commercial banks in Albania.
Up to €180 million has been allocated to date under the AATSF for dedicated credit lines and risk-sharing facilities through local partner banks. Since its launch in 2016, more than 70 million euros in loans have been committed, benefiting more than 6,100 local agri-food SMEs.
The EBRD also provides technical assistance to financial institutions and sub-borrowers participating in the AATSF through the EBRD Small Business Advisory Program in Albania.
($ = 0.9209 euros)