Financed ProjectsFondi Besa MSME VI

Identification Code:

OP/26/0002

Total Operation Cost:

7.000.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

Fondi Besa MSME VI

Countries of Operation:

Albania (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

6th MSME Loan Facility to FONDI BESA SH.A, AL

Co-Financiers/Participants:

n/a

Guarantors/Sponsors:

n/a

Developmental and Regional Cooperation Impact:

The operation involves a loan for on lending to micro, small, and medium sized enterprises (MSMEs) that is expected to have modest but favorable economic benefits for the Albanian economy. The most relevant of these is the additional tax revenue gains from increased economic activity resulting from the financing provided. In addition, the financing will help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is similarly modest but positive. Other BSTDB countries are important trade partners for Albania, so to the extent that MSMEs are benefiting from financing from the operation engaged in export activities, there will be regional cooperation benefits.

Environmental Classification and Impact (summary):

Fondi BESA is engaged in micro and SME lending in Albania by providing its clients business and consumer loans, youth loans and energy efficiency loans. Micro and SME lending is normally not likely to generate significant negative environmental and social impact. Fondi BESA has instituted a functioning environmental and social management system which was found commensurable with the level of environmental and social risks associated with its micro- and SME financing activities. Overall, it is considered that the operation will contribute to promoting micro, small and medium businesses in Albania and positively impact on poverty alleviation, stimulate self-employment, create new jobs and generate revenues.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org