Project description
and objectives:
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ProCredit Bank Albania (formerly Foundation for Enterprise Finance and
Development - FEFAD) is a specialist institution, based in Tirana, which
focuses on providing financial services to Albanian micro and small
enterprises (MSEs) in the private sector.
ProCredit Bank Albania’s principal objectives are:
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the provision of financing to MSEs in the Albanian private sector which
currently face financing constraints;
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assistance in the deepening of the country's financial system by developing
sound micro and small lending techniques and demonstrating to the local banks
that micro and small lending operations can be developed into a profitable
activity; and
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the creation of a sustainable financial intermediary, which in the long run
will be managed and owned by Albanian residents.
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Transition impact:
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The project is expected to have a significant impact on the transition
process. ProCredit Bank Albania will provide financial services to MSEs that
would otherwise have little or no access to formal sector finance. There will
be a strong demonstration effect within the Albanian financial sector since
there are currently no other financial institutions supplying credit to MSEs.
ProCredit Bank Albania should serve to promote competition, improve efficiency
and ensure that this credit demand is satisfied by encouraging more banks to
enter the market.
The impact that ProCredit Bank Albania will have on the Albanian MSE sector
will help promote entrepreneurship at a grass roots level. This will help
consolidate the transition of Albania to a market economy by increasing the
number of individuals and businesses with a stake in the success of this
ongoing process. The success of ProCredit Bank Albania will also help to
rebuild their belief in the basic stability and security of financial
institutions.
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The client:
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ProCredit Bank Albania is a specialist institution, based in Tirana, which
focuses on providing financial services to Albanian MSEs in the private
sector. FEFAD (now ProCredit Bank Albania) was established by KfW in 1996, and
was converted into a commercial bank in early 1999. The bank is now in the
process of a recapitalisation, which will introduce the EBRD, IFC and IMI
(International Micro Investitionen) as shareholders.
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EBRD finance:
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Equity investment of Lek 140 million (up to EUR 1.2 million)
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Total project cost:
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Lek 700 million (EUR 5.14 million)
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Environmental impact:
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ProCredit Bank Albania will carry out its operations in accordance with EBRD's
Environmental Procedures for Small and Micro Loans. In implementing these
procedures, ProCredit Bank Albania will require its borrowers to comply, at a
minimum, with relevant national /local health, safety, environmental and
public consultation requirements.
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Technical
cooperation:
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None
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Maria Teresa Zappia, Operation Leader: zappiam@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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