- EBRD providing guarantee for up to €100 million to Raiffeisen Bank Albania
- Innovative instrument backs new loans at a multiple of the guarantee amount
- Effective Covid-19 crisis response with large scale commitment for green lending
The European Bank for Reconstruction and Development (EBRD), Raiffeisen Bank International (RBI), and Raiffeisen Bank Sh.a. Albania (RBI Albania) are joining forces to unleash lending to Albanian businesses as the country is facing the economic impact of the coronavirus pandemic.
Under the innovative new Guarantee for Growth mechanism the EBRD is providing RBI Albania with an unfunded guarantee for up to €100 million in local currency equivalent linked to the lender’s local currency sovereign bond portfolio. In return RBI Albania will use the freed-up risk taking capacity to increase lending to the real economy at a multiple of the guarantee amount.
Sub-loans under the programme will focus on supporting sound small businesses which are key for Albania’s economy. At least €10 million in local currency equivalent will be allocated towards green projects supporting the country’s sustainable and inclusive growth.
In parallel, the EBRD is launching a dedicated Technical Cooperation Programme, tying in with its work under the Vienna Initiative, where the Bank is active in safeguarding the financial stability of emerging Europe by promoting regulatory alignment of banks with international best practice. Support for the Bank of Albania is focused on aligning the local prudential framework for banks with that in the EU and is supported by the EBRD/Luxembourg Technical Cooperation (TC) Fund.
[EBRD representative] “The EBRD is pleased to launch a new product today which addresses key issues to improve access to finance at a time when keeping viable companies going is more pressing than ever. We are very happy to team up with our long-standing partner Raiffeisen Bank once again. The trust and confidence we have built in many years of cooperation allows us now to take a big leap forward and we are convinced that today marks the beginning of yet another joint undertaking.”
[RBI representative]
[Raiffeisen Bank Albania representative]
To date, the EBRD has invested almost €1.5 billion in 104 projects in Albania. The Bank’s strategy in the country focuses on governance, private sector competitiveness and inclusion, energy diversification, and the low carbon transition.