PRESS RELEASE
Presentation of the World Bank study on financing micro, small and medium enterprises

On 10 July 2018, a joint workshop of the Bank of Albania and the World Bank was organized at the premises of the Bank of Albania on “Finances for Economic Growth". The workshop focused on the presentation of the World Bank study “Access to financing of micro, small and medium enterprises." The experts of the World Bank have compiled a detailed diagnosis and recommendation report based on this study, which analyses the economic environment in which micro, small and medium enterprises operate in Albania.

The report will serve as a platform for policymakers and domestic regulators when drafting support programmes for the funding and development of this crucial sector for the economy.

Micro, small and medium enterprises are considered to be the drivers of economic growth and the sources of innovation that  facilitate progress; yet, they continue to face limited funding sources.

In her address welcome address to the workshop, the Second Deputy Governor of the Bank of Albania, Ms Natasha Ahmetaj focused on the role of the development of this sector for the economy, introducing new ideas and activities for effectively utilising the country's assets. Second Deputy Governor Ahmetaj emphasized that for transition countries, such as Albania, these enterprises are twice as important for the economy, as they not only are the main provider of new jobs but also serve as a starting point toward the industrialization for our economy. Therefore, they need more access to finance, in order to increase their chances to hold up in the economy. Due to their natural profile, they are not able to publish information like big enterprises, which makes the recognition of real risk more costly for the financial institutions. This cost is offset by higher interest rates and tighter lending conditions.

With regard to improving access to finance, Ms Ahmetaj said that the Credit Registry and the Credit Bureau should serve as mechanisms that facilitate the distribution of information and the valuation of creditworthiness for micro, small and medium enterprises. Reliable statistics are also needed for this sector, but this process should be realized without increasing the burden of bureaucracy.

Furthermore, the Second Deputy Governor highlighted that it is important to undertake all the necessary measures to improve the respective policies, infrastructure and incentives in order for these enterprises to have the necessary support to improve human and technological capacities, which contributes to their inclusion in the globalized production process.

In conclusion, Ms Ahmetaj thanked the representatives of the World Bank for the initiative and rational involvement of the experts of the Bank of Albania and of our financial system in drafting this report.

Ms Maryam Salim, Country Manager of the World Bank for Albania, who was present during the presentation of the report, reemphasized the importance of a better access to the funding for micro, small and medium enterprises. Ms Salim said that better access to funding for these enterprises means higher innovation and new jobs. In conclusion, Ms Salim pointed out the importance of such studies and thanked the Bank of Albania for its cooperation on the successful realisation of the report.

Then World Bank representatives continued with the presentation of the report and answered the questions and responded to the comments of the participants.

The workshop was enriched with the contribution of a discussion panel from the sector of micro, small and medium enterprises, financial institutions and the Ministry of Finance and Economy. The MoFE Deputy Minister, Mr Elton Harxhi, was present and praised the quality of the report and expressed the serious commitment of the government in fulfilling its recommendations.