Financed ProjectsNOA

Identification Code:

OP/17/0075

Total Operation Cost:

2.000.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

NOA

Countries of Operation:

Albania (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

MICRO/SME FINANCE FACILITY TO NOA

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 MSMEs benefiting from financing from the operation engage in export activities, there will be regional cooperation benefits. Strengthening the non-bank financial sector is beneficial as it lies outside the risks which banks in Albania currently face.

Environmental Classification and Impact (summary):

The Borrower has instituted a basic environmental and social management system consisting of internal policy, procedures and rules and has integrated it in the general portfolio management. The internal list of excluded activities complies with the BSTDB’s E&S Exclusion List, and the Borrower reported that it is not engaged in any excluded activities. The portfolio analysis suggests that roughly half of the extended loans are in services sector, 23% in agriculture, 18% are trade finance, and 9% are housing improvements, sectors that are associated with low to medium E&S risks. The Borrower reported that sub-loans of medium and high E&S risk category are pre-screened and are subject to appropriate E&S risk assessment and monitoring. The responsibility for E&S screening are assigned to loan officers who received basic training in identifying and managing the E&S issues in financing activities.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org