NEWS

As part of ongoing policies to promote sustainable development in the agricultural sector, the Ministry of Finance and the Ministry of Agriculture and Rural Development have officially presented the new sovereign guarantee scheme for agricultural lending, supported by a total fund of 3 billion ALL (approximately 30 million euros), recently approved by the Albanian government.

Minister of Finance, Mr. Petrit Malaj, and Minister of Agriculture and Rural Development, Ms. Anila Denaj, held a joint meeting with the CEOs of second-tier banks, with the participation of representatives from the Bank of Albania and the Albanian Association of Banks. The meeting focused on the technical aspects of implementing this important financial instrument for the rural economy.

The Sovereign Guarantee is designed as a powerful tool to improve access to finance for small and medium-sized enterprises operating in agriculture, agro-processing, agrotourism, fisheries, and aquaculture. The scheme covers up to 70% of the collateral required for loans of up to 25 million ALL per beneficiary. When combined with the Soft Loan facility from the Bank of Albania, it offers highly favorable interest rates, as low as 2%.

Bank representatives welcomed the new sovereign guarantee scheme, as part of the broader financial instrument signed with the Bank of Albania, aimed at supporting under-financed sectors of the economy through low-interest funding for banks. During the discussions, ideas were exchanged on how to establish a functional and efficient framework for implementing the guarantee, in a manner comparable to similar mechanisms offered by many international organizations. All parties agreed to intensify efforts to attract a high number of applications, promote financial inclusion, and enhance the competitiveness of Albanian products in international markets.