PJERIN SHOSHI, ETLEVA DASHI, NATASHA HODO, NATALIA VLLAMASI
Agricultural University of Tirana, Faculty of Economics and Agribusiness, Tirana – ALBANIA
Agricultural University of Tirana, Faculty of Veterinary Medicine, Tirana – ALBANIA
*Coresponding author E-mail: pjerin.shoshi@gmail.com
Abstract
The Programme for Agriculture and Rural Development of the Government of Albania, aims to modernize and orient the entire agriculture sector. The sector is supported by different schemes (national and by international donors). The financial tool to implement this Program, is the “Agriculture and Rural Development Investment Fund”.
The Albanian agriculture sector is facing multiple difficulties in accessing financing tools for future investments [1]. One of the biggest issues for the Albanian farmers is the impossibility in accessing bank loans [3]. The National Guarantee Fund for Agriculture and Rural Development aims to enhance access to finance for the Albanian agribusinesses through loans for the farmers [2]. The Government of Albania in collaboration with the European Bank for Reconstruction and Development (EBRD) are implementing a financing tool which will facilitate the farmers access into loans and will reduce the interest costs by guarantying the banks for most of the loan collateral [5].
The National Guarantee Fund for Agriculture and Rural Development will be implemented in collaboration with 6 (six) Financial Institutions operating in Albania [2]. This Fund will be operating in the framework of the Albanian Programme for Agriculture and Rural Development. The guarantee provided by the Government of Albania and EBRD, enables the PFIs to reduce their collateral requirements. This will create facilities and enable more farmers to access loans and to finance their investments [4].
This article will analyze the future impact of this financial support for the agricultural sector and the enhancement of its competitiveness.
Keywords: The National Guarantee Fund for Agriculture and Rural Development, the Albanian Programme for Agriculture and Rural Development, farmers access to finance, Agribusiness Risk-Sharing Facilities, Technical Assistance.
