
-
EBRD lends 1 million euros to Intesa Sanpaolo Bank Albania under the Youth in Business program -
Loan intended to stimulate on-lending to MSMEs owned or managed by entrepreneurs under 35 years old -
Sweden, Italy and Luxembourg support the program with technical cooperation funds
The European Bank for Reconstruction and Development (EBRD) is lending €1 million to Intesa Bank Sanpaolo Albania (ISBA) as part of its flagship Youth in Business program. The loan will stimulate on-lending to micro, small and medium enterprises (MSMEs) owned or managed by young entrepreneurs.
The Youth in Business program aims to empower entrepreneurs under the age of 35, supporting them with financial and non-financial products tailored to their needs, demonstrating that young entrepreneurs constitute a bankable segment. It supports both the partner financial institution (local bank) and sub-borrowers with training and consultative support. In addition to having better access to financing, young entrepreneurs will benefit from consultancy projects, e-learning and training.
The program will also help ISBA develop its own unique business model, contributing to new, more inclusive lending practices. This will enable a better understanding of the financial needs of MSMEs managed by young people and the deployment of sustainable and tailor-made credit lines.
Ekaterina Solovova, Director of the EBRD Albania, said: “Our flagship Youth in Business program clearly demonstrates the EBRD’s commitment to the future and how youth inclusion is at the heart of the EBRD’s mission. We are happy to count Intesa Sanpaolo Bank Albania as a partner with whom we can implement this mission.
Alessandro D’Oria, CEO of Intesa Sanpaolo Bank Albania, added: “Our goal to stimulate the local investment market and further stimulate economic growth is fully aligned with the opportunities we want to provide to young entrepreneurs. The Youth in Business program further enriches our catalog of products aimed at young people and is in line with our ESG commitments.
This is the EBRD’s second loan under the Youth in Business program in Albania, having provided €1 million to Union Bank back in August.
Funding for the program in the form of technical cooperation funds was provided by Sweden via the Swedish International Development Cooperation Agency; Italy via the Central European Initiative; And Luxembourg via the EBRD Small Business Impact Fund. These funds will support ISBA’s capacity building, advisory services and training for young MSME leaders.
In the wider region, the EBRD’s Youth in Business program for the Western Balkans plans to provide €100 million to local banks over the coming years.
The EBRD is one of the main institutional investors in Albania. To date, the Bank has invested €2 billion in more than 140 projects in the country.