ALBANIA: SME RECOVERY CREDIT LINE

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 4516

Status Complete

Location

Albania

Business Sector

Financial Institutions

Notice Type

Private

Sub-projects

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 4516

Status Complete

Location

Albania

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

16 Dec 1997

Disclosure date

01 Dec 1997

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Five-year bank-to-bank loan to Banco Italo-Albanese and Tirana Bank for on-lending to small and medium-sized enterprises (SMEs) in Albania.

The principal objectives of the project are:

to provide resources for short- and medium-term financing for restarting private sector activity in Albania;
to establish conditions for a substantial change of balance in the local credit market from the state to private commercial banks.

Transition Impact

The collapse of the emerging private sector, as a result of the recent political and economic crisis, will have a dramatic reverse effect on the transition process in Albania. The project aims to contain such risk by providing additional resources to SMEs through the private banking sector.

The Client

Banca Italo-Albanese (BIA) and Tirana Bank (TB) are private banks operating in Albania. Both fulfil the requirements for receiving an EBRD credit line, in terms of local incorporation, capitalisation, substantial ownership by reputable international banking groups and management quality. BIA has a paid-in capital of US$ 12.5 million, while Tirana Bank has currently a paid-in capital of US$ 4.2 million.

EBRD Finance

US$ 6 million to BIA and US$ 4 million to TB: revolving loan with a variable interest rate, five-year maturity including a two-year grace period. The loan will be granted in two tranches of US$ 3 million for BIA and US$ 2 million for TB over a period of two years. The interest rate will be based on a commercial margin above six-month US$ LIBOR.

Project Cost

US$ 10 million (ECU 8.71 million).

Environmental Impact

The two banks will follow the EBRD's Environmental Procedures for Local Banks in relation to all sub-loans financed through the credit line. In implementing these procedures, the banks will assess potential environmental issues associated with sub-projects, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.

Technical Cooperation

None.

Company Contact

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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