"Businesses, low interest for the sovereign guarantee" - Zekja: Turnover fell by 25%, manufacturing has survival problems
Clothing and footwear manufacturing businesses have not sufficiently absorbed the sovereign guarantee made available by the government in order to transition from an industry with ordering material to production "Made in Albania."
"The fact that the sovereign guarantee was activated in August, three months late, put businesses in difficulty because every day of delay, it loses its effect. From the information we have, it appears that there are not many manufacturing businesses that have applied for this sovereign guarantee, but those that have applied have started using it and are continuing the transformation from customer material to "Made in Albania".
The unfavorable exchange rate of the euro has been one of the main reasons for the low interest of businesses to benefit from this instrument.
"The fall of the euro is one of the reasons for the non-absorption of this sovereign guarantee, because the business, taking place before the drop in turnover by 20-25%, has more important problems than transformation, problems of survival. So we claim that the government should stay closer to the manufacturing business and use all the mechanisms to fully fulfill the manufacturing package which was launched in January by the Prime Minister but which has not been fully implemented. If these measures are taken, we are looking at a green day in 2025".
The sovereign guarantee of 4 billion lek for the manufacturing sector, in order to make investments and for the purchase of raw materials, was approved at the beginning of this year due to the large losses in the sector, as a result of the strong devaluation of the euro. This loan enables businesses in the processing industry to receive financial support through lending with favorable conditions.
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