EBRD and EU support ProCredit Bank Albania with €25 million guarantee for SME lending

• EBRD to provide an unfunded guarantee of up to €25 million to ProCredit Bank Albania
• Facility expected to support up to €50 million in new lending to Albanian SMEs
• EU-backed risk-sharing mechanism supports access to finance and green investment

The European Bank for Reconstruction and Development (EBRD) is partnering with the European Union (EU) to enhance access to finance for small and medium-sized enterprises (SMEs) in Albania.

The EBRD is providing a guarantee of up to €25 million to ProCredit Bank Albania to support up to €50 million in new lending. Under the agreement, the Bank will provide an unfunded guarantee covering 50 per cent of the credit risk of a newly originated SME loan portfolio of up to €50 million.

The project includes first-loss risk cover from the EU through the European Fund for Sustainable Development Plus (EFSD+) under the Growth4All programme for the Western Balkans and Türkiye.

The transaction is designed to provide capital relief to ProCredit Bank Albania, enabling it to deploy additional liquidity into new lending and to expand financing for businesses across the country. The facility is EBRD’s second portfolio risk-sharing transaction in Albania and broadens the range of financial instruments available to support private-sector development and financial inclusion there.

The financing will target SMEs across the country, with a particular focus on underserved segments, including businesses led or owned by women and young entrepreneurs, companies operating outside the capital, Tirana, and firms active in vital sectors such as agribusiness and tourism.

In line with the EBRD’s Green Economy Transition (GET) approach, 50 per cent of the EBRD-guaranteed share of the portfolio will be allocated to eligible green investments, supporting businesses investing in energy efficiency and other sustainable technologies.

The project will also benefit from a technical cooperation package, funded by the EU under the EFSD+ framework, to support capacity building for the implementation of the project and green economy transition.

Ekaterina Solovova, EBRD Head of Albania, said: “SMEs are the backbone of Albania’s economy, yet many still face challenges in securing the financing needed to grow. This is why the EBRD, in partnership with the EU, designed this risk-sharing facility, which will help unlock new lending to small businesses across the country, supporting entrepreneurship, innovation and job creation. At the same time, it will encourage greater investment in green technologies and sustainable business practices, contributing to a more competitive and resilient economy.”

Silvio Gonzato, the EU Ambassador to Albania, said: “The Albanian economy is built on the success of small and medium-sized enterprises. Their continued growth depends on access to finance, and the EU is proud to support this through the EFSD+. The latter promotes sustainable investment by providing a range of risk-sharing instruments across the Western Balkans. Both ProCredit Bank and the EBRD are highly experienced and trusted partners with a strong track record of supporting Albanian businesses.”

Mirsad Haliti, CEO of ProCredit Bank Albania, said: “Strong and sustainable growth depends on SMEs’ ability to invest, innovate and expand. Through the Portfolio Risk Sharing Programme, developed with the EBRD and supported by the EU, we are increasing access to finance and helping businesses to grow with confidence. By supporting entrepreneurs and, through them, job creation and local value chains, this partnership strengthens Albania’s private sector and contributes to the country’s long-term economic development. We are proud to continue backing SMEs as a key driver of growth and innovation.”

ProCredit Bank Albania is an SME-focused bank with strong expertise in supporting micro, small and medium-sized enterprises and promoting green and energy-efficient investments. It is a wholly owned subsidiary of ProCredit Holding, a Germany-based international banking group and a long-standing EBRD partner.

The EBRD is a leading institutional investor in Albania and has invested almost €2.5 billion in the country by way of over 180 projects to date.