|
EBRD takes equity in Albanian commercial bank
Albania's sole private bank, Banco Italo-Albanese, will be able to continue to expand and establish a nationwide branch network with the help of a US$ 2.5 million (ECU 2.02 million equivalent) equity investment from the European Bank for Reconstruction and Development (EBRD) signed today in Tirana.
David Hexter, Director of the Financial Institutions Team at the EBRD, said: "This project represents the first financing by an international financial institution in the Albanian banking sector. With this investment, the Bank is helping to develop a firmly rooted commercial bank in Albania, focused on foreign trade and lending to small and medium-sized enterprises. We are confident that Banco Italo-Albanese will be seen as an example to be followed by other Albanian commercial banks and as a trigger for the setting up of other foreign banks in the country."
Dylber Vrioni, Minister of Finance and Deputy Prime Minister of Albania, said: "This is a very important moment for the Albanian banking system. The project will strengthen the confidence of the people and enhance further developments of Albanian banks."
The Banco Italo-Albanese (BIA), a joint venture between the National Commercial Bank of Albania and the Italian Banca di Roma, has been operational since July 1993. In the relatively underdeveloped Albanian banking system, it is setting high standards in the provision of reliable banking services. The EBRD's investment, which represents 20 per cent of the capital of BIA, will promote the development of the only significant independent, private sector oriented financial institution in Albania and thereby expand the availability of financial services to the real economy.
|
