Project number:


Business sector:

Financial institutions

Notice type:


Environmental category:


Approval date:

16 Dec 1997



PSD disclosed:

01 Dec 1997


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


Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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