The EBRD lends 2 million euros to boost the agri-food and tourism sectors
Union Bank becomes the seventh partner financial institution to join AATSF
Funding that will be supplemented by grants from the Albanian government and the EU
The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to €2 million to Union Bank to support the financing of the agro-industry and tourism sectors. This investment will aim to stimulate the on-lending of loans intended for two important but underfunded sectors of the country. Albania which are essential to its economic development.
Union Bank is the seventh partner financial institution in the country to join the EBRD’s Albania Agro-Industry and Tourism Support Facility (AATSF), a financial instrument tailor-made for the Albanian market and designed to support commercial banks to offer more loans to small and medium-sized businesses. large companies (SMEs) in the tourism and agriculture sector. This will be the EBRD’s second project with Union Bank in less than two months, following a Youth Business Loan – another mechanism intended to support SMEs – was signed at the end of July.
The AATSF loan will be complemented by grant funds of up to €560,000, including a contribution of €460,000 from the Albanian government, including €400,000 in the form of first loss risk coverage and €60,000 investment incentives for sub-borrowers in the agri-food sector. The remaining €100,000, a contribution from the European Union (EU), will finance partial investment grants to sub-borrowers in the tourism sector.
Union Bank will benefit from a technical assistance program which will include capacity building to develop and market more financial products for businesses in both sectors.
In addition, the Bank Tips for Small Businesses The program in Albania will provide business advice and know-how to potential and current sub-borrowers of agro-industrial and tourism credit lines and risk-sharing facilities.
Aleksandra Vukosavljevic, EBRD Director of Financial Institutions for the Western Balkans and Eastern Europe, said: “We are pleased to welcome Union Bank as one of our partner financial institutions under the AATSF. Our continued support to the agro-industry and tourism sectors through this mechanism demonstrates our commitment to the main drivers of Albania’s economic growth and our belief in their strong potential to further boost the Albanian economy. We are confident that this investment will mark another successful step in our strong partnership with Union Bank.
Union Bank Managing Director, Flutura Veipi, added: “We are grateful for this collaboration with the EBRD in support of local agribusiness and tourism, two of the most important sectors of our economy. country. We are convinced that by increasing the availability of financing for our clients in these sectors, we will contribute to their sustainable development and long-term success.
Since the launch of the EBRD’s AATSF in 2016, approximately €180 million in credit lines and risk-sharing facilities have been allocated to partner banks in Albania, of which these banks have on-lent more than €110 million. euros to more than 6,200 local agri-food companies and tourism SMEs.
The EBRD, one of the leading institutional investors in Albania, has invested €2 billion to date in more than 140 projects in the country.