ProCredit Bank Albania



Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

20 Jul 1999



PSD disclosed:

23 Jul 1999

Project Description

ProCredit Bank Albania (formerly Foundation for Enterprise Finance and Development - FEFAD) is a specialist institution, based in Tirana, which focuses on providing financial services to Albanian micro and small enterprises (MSEs) in the private sector.

ProCredit Bank Albania’s principal objectives are:

  • the provision of financing to MSEs in the Albanian private sector which currently face financing constraints;
  • assistance in the deepening of the country's financial system by developing sound micro and small lending techniques and demonstrating to the local banks that micro and small lending operations can be developed into a profitable activity; and
  • the creation of a sustainable financial intermediary, which in the long run will be managed and owned by Albanian residents.

Transition Impact

The project is expected to have a significant impact on the transition process. ProCredit Bank Albania will provide financial services to MSEs that would otherwise have little or no access to formal sector finance. There will be a strong demonstration effect within the Albanian financial sector since there are currently no other financial institutions supplying credit to MSEs. ProCredit Bank Albania should serve to promote competition, improve efficiency and ensure that this credit demand is satisfied by encouraging more banks to enter the market.

The impact that ProCredit Bank Albania will have on the Albanian MSE sector will help promote entrepreneurship at a grass roots level. This will help consolidate the transition of Albania to a market economy by increasing the number of individuals and businesses with a stake in the success of this ongoing process. The success of ProCredit Bank Albania will also help to rebuild their belief in the basic stability and security of financial institutions.

The Client

ProCredit Bank Albania is a specialist institution, based in Tirana, which focuses on providing financial services to Albanian MSEs in the private sector. FEFAD (now ProCredit Bank Albania) was established by KfW in 1996, and was converted into a commercial bank in early 1999. The bank is now in the process of a recapitalisation, which will introduce the EBRD, IFC and IMI (International Micro Investitionen) as shareholders.

EBRD Finance

Equity investment of Lek 140 million (up to EUR 1.2 million)

Project Cost

Lek 700 million (EUR 5.14 million)

Environmental Impact

ProCredit Bank Albania will carry out its operations in accordance with EBRD's Environmental Procedures for Small and Micro Loans. In implementing these procedures, ProCredit Bank Albania will require its borrowers to comply, at a minimum, with relevant national /local health, safety, environmental and public consultation requirements.

Technical Cooperation



Business opportunities

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Text of the PIP

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