Sovereign guarantee in agriculture, need for review/ Investment Council: Analyze costs and administrative procedures
The Investment Council recommends the need to increase the level of use of credit guarantee schemes, specifically referring to the Sovereign Guarantee in Agriculture. In the 2025 annual report, the Council underlines the necessity of reviewing administrative costs and procedures to contribute to improving businesses' access to finance.
The Sovereign Guarantee Scheme for Agriculture, a new financial instrument aimed at improving access to finance for farmers and agribusinesses in the country, was introduced in early 2025. The initiative comes as part of efforts to increase the use of credit guarantee schemes and improve financing opportunities for the agricultural sector.
The scheme offers subsidized interest rates for agribusinesses ranging from 2% to 3.5%, while the state guarantee fund covers up to 70% of the loan amount without requiring collateral. This mechanism aims to reduce risk for financial institutions and create more opportunities for farmers to secure financing for investments.
The program aims to boost investments in rural areas, increase the level of formalization of agricultural activities and improve the competitiveness of the sector in the market. According to the Ministry of Agriculture, farmers and agribusinesses across Albania are being assisted in order to make this instrument as usable as possible.
The Albanian government has signed agreements with 11 commercial banks in the country to enable the application of the sovereign guarantee in the agricultural sector.
The Sovereign Guarantee with a fund of 3 billion lek, or 30 million euros, is an instrument that stimulates lending by banks to enable micro, small and medium-sized enterprises in the agricultural sector, as well as farmers equipped with NPT, to invest in physical and technological assets that increase their production capacities, production quality and operational efficiency.
According to the agreement, the government undertakes to pay 70% of the loan received from banks in the event that it is not repaid by the borrower, but does not undertake to guarantee interest, late fees and penalties or any other type of monetary obligation arising from the loans.
Referring to the agreement, the total amount of loans granted by banks to a borrower must not exceed 250 thousand euros and the loan term cannot be less than three years and greater than 5 years. However, so far no official data has been published on the level of absorption of funds from this scheme, and although an analysis was previously conducted to identify the problems this scheme has and the reason why it does not have a high interest rate.
The government is expected to reinstate the Fuel Transparency Board/ Excise duty is reduced by 20%, immediate reflection in the final price is intended
The government is considering reinstating the Transparency Board, which is expected to set price caps for fuel, following the significant increase in diesel......
Loan payments dominate bank transfers in 2025/ Over 2.5 trillion lek circulated in the system, most of it being loans
Bank transfers related to loans and deposits have increased during 2025, indicating higher financial activity between banks and customers. According to data......
77.3 billion lek for infrastructure and energy - Priorities 2027 -2029 / Focus on roads, water and renewable energy
The Albanian government has foreseen a budget of 77.3 billion lek, or about 2.8% of Gross Domestic Product, for the infrastructure and energy sector,......
EU support for youth employment/Youth Grant, 2252 beneficiaries in Tirana, Shkodra and Vlora
The Youth Guarantee is becoming a key instrument for reducing unemployment among the 15 to 29 age group. This program aims to include young people who are......
Si po ndryshon modeli i arsimit? Kurrikul e re dhe inteligjencë artificiale në klasa
Përditësimi i sistemit arsimor është një nga drejtimet kryesore të parashikuara në Dokumentin e Politikave Prioritare 2027–2029, ku synohet përshtatja e......
Work balance 2025, 79% of businesses result in violations - Ibrahimaj: Consulting priority, changing approach towards entities
The State Labor Inspectorate has presented its annual report for 2025, revealing the figures of inspections across the country. During her speech, the......
Albania continues to increase commercial flights, about 126% more than before the pandemic, leading Europe
According to the latest data published by Eurostat, in February 2026, the level of flights in the European Union still remains 3.6% lower compared to......
2026, year of long weekends/ Holiday calendar gives 8 extra days off by "transferring" dates
Today, as Muslim believers celebrate Eid al-Fitr, everyone's attention turns to planning the rest of the year. The official holiday calendar for 2026 turns......
