TIRANA, May 13 – The Albanian government, the banking sector, and domestic enterprises signed a new partnership for financing small and medium-sized enterprises under the “Double Your Entrepreneurship” programme. Edi Rama said the agreement with the banking sector and the European Investment Bank will expand access to finance for SMEs. He described SMEs as the engine of the economy.

In this context, he said the programme targets businesses with growth potential. However, he noted that many of them still struggle to access affordable credit. As a result, financing constraints continue to limit investment and expansion.

At the same time, he said the new framework builds on recent cooperation with the European Investment Bank. He explained that it extends support beyond its initial focus on agriculture. In particular, he pointed to diaspora returnees and local entrepreneurs as key beneficiaries. Moreover, he said these actors contribute to innovation and employment. He added that the initiative allows firms to double their capacity.

Meanwhile, Rama reported a rise in lending in recent years. He said total credit increased from around 5 billion euros five years ago to about 10 billion euros today. This, he said, reflects a stronger financial system. In addition, he noted that non-performing loans fell from around 25% a decade ago to minimal levels today.

Finally, he said the programme will provide credit lines with interest rates between 2% and 3%. A sovereign guarantee will cover 30% to 70% of risk depending on borrower profile. He also said the government will establish a guarantee fund to support business planning. In parallel, he said this will improve coordination between banks and enterprises.

/a.p./