"Getting a loan, a bureaucratic process" - Businesses: Agriculture and construction, the most "discriminated" by banks
Businesses in the agriculture, construction and processing industry sectors state that the rate of rejection of their loan requests from banks is very high. In a survey conducted by the Investment Council with businesses and banks, it appears that there is a discrepancy between the sectors that perceive a greater need for financial resources and the sectors that financial institutions are more willing to support.
Data from the questionnaire show that agriculture, construction and processing industry perceive a greater need for financial resources. Meanwhile, 9 banks have reported that they are more inclined to finance the tourism, energy and services sectors.
According to the banks, micro, small and medium enterprises are the main focus of their activities and show an increase in lending to this sector over the last three years. However, according to World Bank data, Albania still ranks last in the region for bank lending to businesses and for the number of businesses that use commercial banks as a source of financing.
Businesses report that documentation requirements are perceived as excessive and constantly increasing, the process is overly bureaucratic, with unnecessary requests, lengthy procedures and significant delays, such as collateral release confirmations that take months to complete. Among those businesses that do not meet these requirements, only 12% turn to non-bank institutions for financing. Most companies report that they obtain the necessary funds from alternative sources outside the financial system.
The Investment Council recommends that banks review bureaucratic procedures and documentation. Reducing bureaucratic barriers, simplifying documentation and ensuring processes treat customers with dignity and respect, recognizing them as partners.
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