Bank of Albania approves MSME financing programme offering banks long-term funding below the policy rate

The Bank of Albania’s Supervisory Council approved the Micro, Small, and Medium-sized Enterprises Financing Program (MSMEsFP) and its accompanying documentation, creating a structured instrument for commercial banks to expand access to credit for micro, small and medium-sized enterprises in Albania. The Council also approved its 2025 work programme and the schedule of Supervisory Council meetings for the year. Under the MSMEsFP, eligible banks with access to the Bank of Albania’s monetary operations would be able to obtain long-term funding at a cost lower than the policy rate, subject to an obligation to use the liquidity exclusively to finance MSMEs. The programme is expected to lower borrowing costs relative to current long-term SME lending rates, while keeping credit risk with commercial banks; the liquidity injection will be secured by collateral similar to that accepted in standard operations. Implementation will be via commercial banks operating in Albania that are licensed, regulated and supervised by the Bank of Albania. The meeting schedule is to be published on the Bank of Albania’s website.