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EU and EBRD, 5 million euro package to promote small and medium-sized businesses in Albania

by AI | 20.Jan 2025 | Europe in brief AI

Under the “Be Digital” program, SMEs will benefit from EU-funded grant incentives worth up to 10 percent of the loan amount, making their investments more affordable.

Signing ceremony of the package in Tirana (Photo: Delegation of the European Union in Tirana)

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) joined forces to support small businesses in Albania through a partnership with Union Bank and other donors. Thus, the parties signed a financial package worth 5 million euros at the House of Europe, in Tirana.

The package was signed by Ekaterina Solovova, head of EBRD in Albania, and Flutura Veipi, CEO of Union Bank, in the presence of EU ambassador Silvio Gonzato.

The 5 million euro financial package from EBRD will be disbursed through Union Bank for small and medium enterprises (SMEs) in Albania within the framework of two programs.

The “Go digital” program will support their digitization and modernization, as well as promote green investments.

The “Youth in business” program aims to increase access to finance for small businesses owned or led by young entrepreneurs.

During the signing ceremony of the package, EBRD’s director in Albania, Ekaterina Solovova, stated that she feels proud to strengthen support for small businesses in Albania, a cornerstone of the local economy, through this partnership with Union Bank.

“These agreements reflect EBRD’s forward-looking approach to fostering youth empowerment and driving digital transformation of the private sector,” she added.

Both programs are supported by EU funding. Under the “Go digital” program, SMEs will benefit from grant incentives funded by the EU worth up to 10 percent of the loan amount, to make their investments more affordable.

Under the “Youth in business” program, the EU will provide funding to cover the first loss risk (FLRC) up to 10 percent of the loan amount. The funding is channeled through the European Fund for Sustainable Development Plus (EFSD+) program – the first time EFSD+ has supported a project in the Western Balkans.

Meanwhile, the EU ambassador in Tirana, Silvio Gonzato, expressed that “we are proud to offer financing through EBRD and Union Bank to facilitate access to finance for SMEs in Albania.”

“SMEs employ more than 80% of the workforce in Albania and such facilitated financing is vital to ensuring their continued success. We aim to support young entrepreneurs and promote the use of digital technologies in SMEs to make them more competitive, which aligns with the EU’s Digital Decade and our Youth Strategy. This is also what the EU Growth Plan for the Western Balkans aims for,” emphasized Gonzato. (January 20)