Intesa Sanpaolo Bank and Albania Agribusiness Support Facility join forces

Local farmers and agribusiness firms to benefit from fresh funds

Intesa Sanpaolo Bank Albania and the Albania Agribusiness Support Facility (AASF) are joining forces to increase local farmers’ and agribusiness companies’ access to finance, especially in remote regions of the country.

The EBRD – together with the government of Albania, one of the sponsors of the Facility – is providing unfunded risk participation of €25 million. This will free up to €50 million in loans to be provided by Intesa Sanpaolo Bank Albania to local agribusinesses.

In addition, technical cooperation funds will support Intesa Sanpaolo Bank Albania with developing new financial products that meet the needs of the local agribusiness sector.

Agribusiness is a vital sector of Albania’s economy. It provides employment for more than 50 per cent of the population in rural areas and accounts for around 20 per cent of the country’s GDP. However, the sector remains underserved by financial institutions, with loans to agribusiness accounting for only 2 per cent of total lending to the economy.

The AASF, launched by the EBRD and the government of Albania last year, is addressing this challenge by improving access to finance for local agribusinesses through dedicated credit lines or by sharing the risk of lending to the agribusiness sector. The government has made available up to €36 million to support the Facility and the EBRD is providing up to €100 million in funding and risk-sharing facilities.

Intesa Sanpaolo Bank Albania is a fully owned subsidiary of Intesa Sanpaolo Spa and the fourth-largest bank in Albania. The bank has a strong regional outreach which will help AASF in reaching rural clients.

[EBRD representative] said: “We welcome the signing today as it represents a significant step in the development of our Facility and for Albania’s agribusiness sector. The growing interest in the Facility’s products is a huge encouragement to continue our efforts. Strengthening the agribusiness sector means strengthening the overall economy of Albania, to which we are firmly committed.”

[Intesa Sanpaolo Bank Albania representative] added:

In addition to financing instruments, the framework also includes technical assistance to help financial institutions enhance their lending, as well as advisory services through the EBRD’s Advice for Small Businesses that will help small and medium-sized agribusiness enterprises to develop their performance in a wide range of areas and improve their bankability. The EBRD is also continuing to support the Albanian institutions with specific activities in favour of sectoral reform in coordination with other development partners.

Since the start of its operations in Albania, the EBRD has invested more than €1 billion in 77 projects in the country. The Bank is active in all sectors of the economy, with a special emphasis on infrastructure and energy, where demand and potential are high. Under the EBRD’s new transition concept the Bank aims to promote the six transition qualities, defining successful and sustainable market economies as resilient, integrated, inclusive, green, well-governed and competitive.