The Ministry of Finance (Albania) convened a high-level meeting with commercial banks, the Bank of Albania and the Ministry of Agriculture and Rural Development to review progress on the Government’s Sovereign Guarantee Scheme for the agricultural sector and the Micro, Small and Medium Business Financing Programme (PFBVM). The discussion focused on obstacles to effective credit transmission to the real economy and on defining measures to improve access to finance for farmers, agricultural businesses and MSMEs while respecting prudent risk management and financial stability. The agricultural sovereign guarantee scheme is funded at ALL 3 billion (EUR 30 million) and covers up to 70% of a loan’s value, with an interest rate capped at 2%, a minimum 12-month grace period and no penalties for early repayment. Participants reported a recent pick-up in interest and applications after an initial familiarisation period, with additional applications under bank assessment, while the Bank of Albania highlighted the need to address operational issues to increase the scheme’s effectiveness and uptake. Authorities and banks also urged intensified outreach to farmers and businesses to make greater use of existing financing and investment programmes, alongside continued applicant support from agriculture ministry agencies. Ministers and the central bank governor committed to reviewing banks’ proposals for future interventions and to continue the dialogue in upcoming meetings.

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