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The EBRD lends up to €50 million and mobilizes an additional €20 million from the OPEC Fund -
Joint financing specifically intended for on-lending to MSMEs -
At least 20 percent of this EBRD financing is dedicated to green projects
The European Bank for Reconstruction and Development (EBRD) is providing up to €50 million to Raiffeisen Bank Albania (RBAL), which will be eligible for RBAL’s minimum requirements for own funds and eligible liabilities (MREL) . The Bank is also mobilizing an additional 20 million euros for RBAL in the form of privileged senior financing from the OPEC Fund for International Development (OPEC Fund).
The financing is intended to be on-lent to micro, small and medium enterprises (MSMEs), a crucial market segment for the sustainable development of Albaniathe economy of. At least 20 percent of the loan will be devoted to green projects eligible for the EBRD program. Transition approach towards a green economystrengthening RBAL’s green loan efforts.
This is the first MREL eligible loan supported by the EBRD in Albania and the wider Western Balkans region. Joint financing from the EBRD-OPEC Fund will help RBAL achieve its MREL target set by the Bank of Albania.
As part of its European Union (EU), Albania is at the forefront of the transposition of the European Bank Recovery and Resolution Directive (BRRD) in the region, having been the first country in the Western Balkans to implement a framework recovery and resolution of banks. The EBRD plays a key role in supporting local authorities to design and implement a local resolution regime through ongoing technical assistance to the Bank of Albania.
Aleksandra Vukosavljevic, EBRD Director of Financial Institutions for the Western Balkans and Eastern Europe, said: “We are proud to be among the pioneering providers of MREL in a region that has limited access to this type of funding. The financing under this agreement, together with the financing mobilized from the OPEC Fund, will enable Raiffeisen Bank Albania to offer a significant increase in financial opportunities to MSMEs, helping them to prosper and boost the country’s economy. Furthermore, we are convinced that this project will serve as a catalyst, paving the way for wider interest in these instruments, notably through the participation of private investors.
Tareq Alnassar, Deputy Managing Director of the OPEC Fund, said: “We are pleased to partner with the EBRD and Raiffeisen Bank Albania to improve local MSMEs’ access to finance and, in particular, to support micro and small businesses led by women, food security and the environment. energy projects. Together, we are making a significant contribution to strengthening the strategic MSME sector, which is the engine of growth and job creation.
Christian Canacaris, CEO of Raiffeisen Bank Albania, added: “We are pleased to be the first bank in the country to sign this agreement and engage in this remarkable partnership. It is a proud moment for us to extend our partnership with the EBRD and we are pleased to initiate our collaboration with the OPEC Fund. Once again, Raiffeisen Bank Albania demonstrates its commitment to facilitating MSME financing and in particular to empowering women in business and green financing, by strengthening our financial capabilities and compliance with regulatory requirements. We look forward to the positive outcome and impact of this joint agreement.
RBAL is the third largest bank in Albania and has been a client of the EBRD since 2019.
This project is fully in line with the Bank’s current strategy country strategy for Albania, which was adopted in 2020. More specifically, it aligns with two strategic priorities focused on the private sector and the green transition: increasing access to finance and strengthening energy diversification and the low-carbon transition.
This loan is the third line financed by the EBRD in recent months in favor of MSMEs in Albania, after the signing of two Youth in Business loans. August And October respectively.
The EBRD is the largest institutional investor in Albania, where it has been active since 1991. To date, the Bank has invested €2 billion in more than 140 projects.