Denaj: Sovereign guarantee for SMEs in agriculture
A roundtable discussion on the topic "Agricultural Sector Lending: Identifying pathways and creating instruments for qualitative progress in lending to the agricultural sector" is taking place in Tirana. During her speech, the Minister of Agriculture, Anila Denaj, said:
Agricultural development has several problems such as the fragmentation and formalization of businesses in this sector, the lack of collateral. The Bank of Albania's program for lending to small and medium-sized enterprises will be accompanied by a sovereign guarantee that will be provided this year. In cooperation with the Ministry of Finance, we will cover at least 70% of the principal of the loans. Investments that promote mechanization and innovation, investments in agrotourism, investments in greenhouses.
Meanwhile, the Minister of Finance, Petrit Malaj, stated: "Agriculture contributes 18% to the economy and employs 40% of the population. We have planned more budget expenditures for agriculture this year. The challenges are land fragmentation, lack of access to financial instruments, and consequently lack of investment. Increasing investments in modern equipment. A banking instrument that will cover 70% of the principal of loans. 250 million euros for soft loans. Collateral requirements will be reduced."
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