EBRD and Raiffeisen Bank International to boost lending opportunities in Albania

By Megha Bhattacharya

The European Bank for Reconstruction and Development (EBRD) has teamed up with Raiffeisen Bank International (RBI), and Raiffeisen Bank Albania (RBAL) to mobilise lending opportunities for Albanian businesses following the adverse economic impact of the COVID-19. EBRD will be providing RBAL with an unfunded guarantee for up to €100 million in local currency equivalent linked to the bank’s local currency sovereign bond portfolio.

Jürgen Rigterink, EBRD First Vice President, said, “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 once again.”

EBRD is also launching a technical cooperation programme with Bank of Albania with an aim to align the local prudential framework with that of banks in the European Union. The programme is supported by the Luxembourg ODA Technical Co-operation Fund and builds on the work under the Vienna Initiative. The EBRD has invested almost €1.5 billion in 104 projects in Albania.

“We are excited to collaborate with the EBRD on this innovative product in order to support the real economy in the region and help finance sustainable projects,” said RBI CEO Johann Strobl. “Our partnership demonstrates the strength and benefit of cooperating with others and thinking outside of the box in times of crises when fast and effective solutions are needed the most.”

Christian Canacaris, CEO of Raiffeisen Bank Albania, said, “Local banks’ ability to support the growth of successful corporates and small and medium-sized enterprises, which are a pillar of the economies in the Western Balkans, is often constrained by the regulations in place. The facility will strengthen RBAL’s capacity to boost financing to the private sector and to meet the financial needs of selected clients. In addition, through this agreement, we will further increase our support towards financing of green technologies in Albania and impact the sustainable development of the country.”