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Agreement: 5m euros from German government for Rural Credit Guarantee Fund for the agricultural sector

Agreement: 5m euros from German government for Rural Credit Guarantee Fund for the agricultural sector

The Albania-Germany bilateral agreement on the Rural Credit Guarantee Fund for the agricultural sector is signed.

Minister of Agriculture and Rural Development, Niko Peleshi and the German Ambassador accredited in Tirana, Susanne Schütz signed today at the Ministry of Agriculture and Rural Development agreement on the Rural Credit Guarantee Fund to facilitate lending and financing of Albanian farmers.

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The agreement provides for larger loans and longer term maturities for Albanian farmers. In his speech, Minister Peleshi thanked the German government, which through the German Bank KfW and GIZ supported the agricultural sector, considering it as a very important leader and coordinator for rural development in Albania and mainly for helping small farmers.

“This is an important moment, in fact, a simple ceremony but giving way to a program that follows a previous program of support through the Rural Credit Guarantee Fund, from KfW to farmers, mainly to small farmers, those who have small farms. The first program had the value of about 3 million euros, have benefited 1000 farmers, while this program has a value of about 5 million euros. Compared to the total budget or budget support of other programs such as IPARD, it seems to be a very modest one, but in fact, the focus of this program makes the number of beneficiaries to be very high. We expect to have over 1000 beneficiary farmers. “

At the end of June, Minister Peleshi, in the presence of the Ambassador of the European Delegation in Tirana, introduced the “Rural Credit Guarantee Fund” as a financing and lending instrument for the EU-funded agricultural sector, KfW and the Government of Albania. This fund over the years 2015-2017 has provided about 1,000 credits, worth over 3 million euros. Through the Guarantee Fund farmers through loans provided on mitigating terms cover the remainder of the funding that is not covered by the grants received as in the case of the National Financial Support Scheme.

During her speech, the German Ambassador, Susanne Schütz said that with the help of the Guarantee Fund, new jobs will be created in the agricultural sector, which will bring about improvement of conditions in rural areas.

“In order to respond to the growing demand for loans, the Rural Credit Guarantee Fund needs a new capital. So gladly let me know that the Federal Government has put another 5 million euros at the disposal of this fund. This money will be used to increase the guarantee capital, so there will already be more clients who will be able to take credit. We will also fund an expert in sensitizing partner banks to the specific needs of Small and Medium-Sized Enterprises in rural areas. This makes it clear that through the Rural Credit Guarantee Fund, we can successfully tackle the difficulties in borrowing small enterprises in rural areas. “

New Source: Ministry of Agriculture and Rural Development

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