The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have come together to bolster small businesses in Albania through a collaborative initiative with Union Bank and various other donors. A financial package totaling 5 million euros was officially signed at the House of Europe in Tirana.
The agreement was formalized by Ekaterina Solovova, EBRD’s head in Albania, and Flutura Veipi, the CEO of Union Bank, with EU Ambassador Silvio Gonzato in attendance.
This 5 million euro funding from the EBRD will be allocated via Union Bank for the benefit of small and medium enterprises (SMEs) in Albania, encompassing two distinct programs.
The “Go digital” initiative aims to facilitate the digitization and modernization of businesses, while also encouraging investments in green technologies.
The “Youth in business” program is designed to improve financial access for small enterprises that are owned or managed by young entrepreneurs.
During the signing ceremony, Ekaterina Solovova expressed her pride in enhancing support for small businesses, which she identified as a fundamental aspect of Albania’s economy, through the collaboration with Union Bank. She remarked, “These agreements embody EBRD’s proactive strategy in promoting youth empowerment and advancing the digital transformation of the private sector.”
Both initiatives receive backing from EU funding. Under the “Go digital” program, SMEs can access grant incentives from the EU amounting to 10 percent of the loan value, making investments more feasible.
In the case of the “Youth in business” program, the EU will provide funding to mitigate the first loss risk (FLRC) up to 10 percent of the loan amount. This funding is directed through the European Fund for Sustainable Development Plus (EFSD+) program, marking the first time EFSD+ has lent support to a project in the Western Balkans.
Moreover, EU Ambassador Silvio Gonzato conveyed his pride in facilitating financing through the EBRD and Union Bank to enhance financial access for SMEs in Albania. He stated, “SMEs constitute over 80% of the workforce in Albania, making such accessible financing crucial for their ongoing success. Our objective is to assist young entrepreneurs and promote the adoption of digital technologies among SMEs to enhance their competitiveness, aligning with the EU’s Digital Decade and our Youth Strategy. This aligns with the goals of the EU Growth Plan for the Western Balkans.” (January 20)
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