The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are strengthening access to finance for small and medium-sized enterprises (SMEs) in Albania through a new €25 million guarantee facility for ProCredit Bank Albania. The initiative is expected to support up to €50 million in new lending to businesses across the country.
Under the agreement, the EBRD will provide an unfunded guarantee covering 50% of the credit risk of a newly created SME loan portfolio. The risk-sharing mechanism is backed by the EU through the European Fund for Sustainable Development Plus (EFSD+) under the Growth4All programme for the Western Balkans and Türkiye.
The facility will provide capital relief to ProCredit Bank Albania, allowing the bank to increase lending capacity and offer more financing opportunities to SMEs. The support is designed to help businesses invest, expand operations, create jobs, and strengthen their contribution to Albania’s economy.
The financing will focus on underserved segments, including women-led businesses, young entrepreneurs, companies operating outside the capital city of Tirana, and firms active in key sectors such as tourism and agribusiness. The initiative aims to improve financial inclusion while supporting private-sector growth throughout the country.
In line with the EBRD’s Green Economy Transition approach, half of the EBRD-guaranteed portion of the loan portfolio will support eligible green investments. These funds will help businesses adopt energy-efficient solutions and sustainable technologies, contributing to Albania’s transition toward a more environmentally resilient economy.
The project also includes technical assistance funded by the EU to strengthen implementation capacity and support businesses investing in green practices. ProCredit Bank Albania, which specializes in financing micro, small, and medium-sized enterprises, will use its expertise to expand support for companies seeking sustainable growth.
The partnership marks another step in strengthening Albania’s SME financing ecosystem. The EBRD has invested nearly €2.5 billion in Albania through more than 180 projects, supporting economic development across multiple sectors.
