- EBRD loans €1 million to Intesa Sanpaolo Bank Albania under the Youth in Business programme
- Loan to boost on-lending to MSMEs owned or managed by entrepreneurs under 35
- Sweden, Italy and Luxembourg support the programme with technical cooperation funds
The European Bank for Reconstruction and Development (EBRD) is lending €1 million to Intesa Sanpaolo Bank Albania (ISBA) under its flagship Youth in Business programme. The loan will boost on-lending to micro, small and medium-sized enterprises (MSMEs) that are owned or managed by young entrepreneurs.
The Youth in Business programme aims to empower entrepreneurs under the age of 35, supporting them with financial and non-financial products tailored to their needs, demonstrating that young businesspeople are a bankable segment. It supports both the partner financial institution (local bank) and sub-borrowers with training and advisory support. As well as gaining better access to finance, young entrepreneurs will benefit from consultancy projects, e-learning and training.
The programme will also help ISBA develop its own unique business model, contributing to new and more inclusive lending practices. It will allow for a deeper understanding of the financial needs of MSMEs under youth management, and for sustainable, tailor-made credit lines to be rolled out.
Ekaterina Solovova, EBRD Head of Albania, said: “Our flagship Youth in Business programme clearly shows the EBRD’s commitment to the future and how central youth inclusion is to the EBRD’s mission. We are happy to have 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 drive economic growth is fully aligned with the opportunities we want to offer young entrepreneurs. The Youth in Business programme further enriches our product catalogue for the youth and is in accordance with our ESG commitments.”
This is the second EBRD loan under the Youth in Business programme in Albania, after it provided €1 million to Union Bank back in August.
Financing for the programme in the form of technical cooperation funds has been 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 people running MSMEs.
In the wider region, the EBRD’s Western Balkans Youth in Business programme expects to provide €100 million to local banks over the coming years.
The EBRD is a leading institutional investor in Albania. To date, the Bank has invested €2 billion in more than 140 projects in the country.