The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are joining forces to boost small businesses in Albania through a partnership with Union Bank and other donors.

A financing package of €5 million was signed today in Europe House in Tirana by Ekaterina Solovova, Head of EBRD Albania, and Ms Flutura Veipi, Union Bank CEO, in the presence of EU Ambassador Silvio Gonzato. 

The €5 million EBRD financing package will be disbursed through the Union Bank to small and medium-sized enterprises (SMEs) in Albania under two programmes. The Go Digital programme will support their digitalisation and modernisation, and boost green investments. The Youth in Business programme aims to increase access to finance for small businesses owned or led by young entrepreneurs.

Ekaterina Solovova, EBRD Head of Albania, said: "We are proud to strengthen our support for small businesses in Albania, a cornerstone of the local economy, through this partnership with Union Bank. These agreements reflect the EBRD's forward-looking approach to fostering youth empowerment and driving the digital transformation of the private sector."

Both programmes are supported by EU funding. Under the Go Digital programme, SMEs will benefit from EU-funded grant incentives worth up to 10 per cent of the loan amount to make their investments more affordable.

Under the Youth in Business programme, EU will provide the funding to cover First Loss Risk Cover (FLRC) of up to 10 per cent of the loan amount. The funding is channelled through European Fund for Sustainable Development Plus (EFSD+) programme – the first time that EFSD+ has supported a project in the Western Balkans.

Silvio Gonzato, EU Ambassador, said: “We are proud to provide funding through the EBRD and Union Bank in order to facilitate access to finance for SMEs in Albania. SMEs employ more than 80% of the workforce in Albania and such facilitated funding is vital to ensure their continued success. We aim to support young entrepreneurs and to promote the use of digital technologies in SMEs in order to make them more competitive, which is in line with the EU’s Digital Decade and our Strategy for Youth. This is also what the EU Growth Plan for the Western Balkans aims for”.  

The Union Bank as a commercial bank in Albania has been focusing on SME lending for years.

Flutura Veipi, the CEO of Union Bank, said: “We are excited to partner with the EBRD in launching these two transformative programmes. We are also proud to build on the success of the YiB programme, where an investment of €1 million has already delivered amazing results in supporting young entrepreneurs and scaling up their businesses. This experience has shown us the potential for growth when we invest in youth, and we are excited to continue expanding these opportunities. These initiatives represent a significant step forward in fostering innovation, economic growth and sustainability in Albania, supporting the next generation of leaders and modernising the private sector.”