The European Bank for Reconstruction and Development (EBRD) has extended a €5mn trade finance facility to Tirana Bank, part of a first-ever €10mn financing package for the Albanian lender.
The package consists of a €5mn limit under the EBRD’s Trade Facilitation Programme (TFP), intended to expand Tirana Bank’s trade operations and promote cross-border activity in the region, as well as a €5mn loan to support its investment in green technologies.
The TFP portion provides guarantees to international confirming banks, covering the risks of transactions undertaken by Tirana Bank, which was established in 1996 and was the first privately owned bank in Albania.
It also offers short-term loans and working capital finance, providing pre-shipment and post-shipment support for international trade transactions.
“The facility will enable Tirana Bank to expand its trade finance operations, strengthen its correspondent banking network and promote intra-regional trade,” the EBRD says.
“It is further complemented by technical cooperation aimed at enhancing the bank’s trade finance capabilities, product offering and institutional expertise.”
The separate €5mn senior loan is intended to support green investments in Albanian SMEs, in doing so encouraging local firms “to go beyond business as usual” and increase their competitiveness in the regional market.
Local SMEs will receive up to 10% of the loan value in cashback to make investments more affordable, with grant incentives supported by Denmark, Luxembourg, Norway, Switzerland and the US.
“This collaboration is important for fostering sustainable growth, enhancing regional competitiveness and helping local businesses align with international standards,” says Charlotte Ruhe, the EBRD’s managing director for Central and South-Eastern Europe.
“By combining financial tools with technical assistance, we are unlocking new opportunities for innovation and resilience in Albania’s private sector.”
Tirana Bank chief executive Dritan Mustafa adds: “These programmes reflect our commitment to driving inclusive, sustainable growth and positioning Tirana Bank as a catalyst for innovation and competitiveness in the Albanian market.”
The EBRD has also agreed to provide a €10mn loan to ProCredit Bank Albania, which aims to strengthen access to finance for SMEs in the country.
The multilateral development bank says it has invested more than €2.3bn in Albania since 1991 across 168 projects, including by targeting SMEs and women-run businesses.
