03 | THE RESULTS – DELIVERY BY SECTORS
CHANNELING ON-LENDING ACROSS ALBANIA
Micro, small and medium-sized enterprises (MSMEs) often struggle to access finance, which in turn severely limits their prospects for growth. In 2023, the OPEC Fund provided US$171 million in banking and financial services to partners worldwide.
Of all the businesses in Albania 99 percent are MSMEs. Forming the core of the economy, they provide over 80 percent of all jobs and produce around two-thirds of all exports, according to the World Bank. But they face massive hurdles. According to the Global Competitiveness Report from the World Economic Forum, the top barriers to enterprise de- velopment and competitiveness in the country are tax rates, corruption and access to finance. Close to a quarter of MSMEs in Albania finance their operations from re- tained earnings while 15 percent rely on informal third-party finance from family and friends, according to a survey conducted by the European Central Bank. Small businesses in Albania are often of an informal nature with limited collateral, low financial capabilities and reluctance to make digital transac- tions, particularly in the agriculture sector. That is the background to the OPEC Fund’s ¤20 million loan to Raiffeisen Bank Albania (RBAL) for on-lending to MSMEs. The loan will in particular target women-led companies involved in food security or green energy pro- jects, thus dovetailing with our strategic priorities. The ¤20 million will also support RBAL’s lending to the agribusiness sector, which aims to strengthen resilience throughout the food value chain. The OPEC Fund’s loan, the first to a financial institution in Albania, is extended in parallel with a ¤50 million loan by the European Bank for Reconstruction and Development.
ESTEBAN CHEDIAK OPEC Fund Investment Manager
Our collaboration with Raiffeisen Bank Albania represents an historic milestone, which positions the OPEC Fund as a lead driver of positive change across the Albanian financial system. The implemen- tation of this facility was unlike any of our standard financing facilities to banks and I feel a deep sense of accomplishment. This transaction symbolized a ground- breaking loan, which met all the criteria for the OPEC Fund’s first-ever MREL (minimum requirement for own funds and eligible liabilities) loan. We are proud to have pioneered this facility in the Western Balkans with a key partner like EBRD, as the first-ever loan to a financial institution in Albania supporting women-led MSMEs, green loans and food security.
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