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European Bank signs first loan to Albania; will assist their chromium industry
The European Bank for Reconstruction and Development and the Government of Albania today signed a US$ 10 million (ECU 7.4 million equivalent) loan agreement for a telecommunications project. It also announced that the Albanian Government has awarded it a mandate to act as financial advisor with respect to the restructuring of and foreign investment in its chromium industry.
Jacques Attali, President of the European Bank, said: "We are extremely pleased to announce this first loan and technical cooperation to Albania, which will enhance the working of market mechanisms and serve as a catalyst for general economic development and reform in the country. Improved telecommunications will give Albanian businesses access to vital overseas market information, and our work in the chromium industry will boost an industrial sector likely to attract foreign investment in the short term."
The loan will help finance the modernisation and expansion of the telecommunications system in Albania. The network expansion will almost double the number of automatic subscribers in Albania, increasing the telephone density from 1.45 lines per 100 inhabitants to 2.25. The project is the first phase of a coherent long-term development programme, which, by the turn of the century, should enable Albania to have a fullly digital and profitable network.
The total cost of the project is ECU 29.3 million. In addition to the European Bank loan, concessionary equipment and monetary support have been obtained from Norwegian Telecom and the Norwegian, Swiss and Italian Governments. Technical cooperation funds are expected from EC PHARE and the European Bank.
The European Bank's involvement with Albchrome, the Albanian state-owned chromium industry, will be assisted by a consortium of advisers who will complement the Bank's expertise with technical assistance in legal, mining, accountancy and financial analysis. The Bank has arranged for the financing of the technical assistance contracts from funds made available to it from the US Agency for International Development.
Albania is the third largest producer of chromium in the world and, as such, the industry represents a crucial asset for the country.
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