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Fondi Besa MSME 2

Albania | Financial Institutions

Identification Code:: OP/16/0023
Total Operation Cost:: 5.000.000 EUR
Maturity:: 36 months
Operation Status:: BSTDB Approved Amount – Approval Date

5.000.000 EUR – 23 Sep 2016
: BSTDB Signed Amount – Signed Date

5.000.000 EUR – 18 Nov 2016
: Status:
Completed
Description and Purpose of the Operation:: Fondi Besa MSME 2
Countries of Operation:: Albania (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: 2nd MSME Facility to FONDI BESA SH.A
Co-Financers/Participants:: N/A
Guarantors/Sponsors:: N/A
Developmental and Regional Cooperation Impact:: The operation involves a loan for on-lending to micro, small and medium sized enterprises (MSMEs) that is expected to have modest but favorable economic benefits for the Albanian economy. The most relevant of these is the additional tax revenue gains from increased economic activity resulting from the financing provided. In addition, the financing will help further enhance benefits such as increases in employment, increase in export capacity and competitiveness, and multiplier effects for other parts of the economy. The regional cooperation element is similarly modest but positive. Other BSTDB countries are important trade partners for Albania so to the extent MSMEs benefiting from financing from the operation engage in export activities, there will be regional cooperation benefits. Strengthening the non-bank financial sector is beneficial as it lies outside the risks which banks in Albania currently face.
Environmental Classification and Impact:: FONDI BESA is engaged in micro and SME lending in Albania by providing its clients business and consumer loans, youth loans and energy efficiency loans. Micro and SME lending is normally not likely to generate significant negative environmental and social impact. Nevertheless, there are certain environmental and social risks associated with such financing for which the FI needs to have the appropriate capability to ensure that these risks are properly assessed and mitigated. The Environmental and Social Assessment of FONDI BESA focused primarily on the existing environmental and social management arrangements, such as policies, procedures, rules and responsibilities, and whether the company is engaged in activities prohibited by the Bank as stipulated in the BSTDB Environmental and Social Exclusion List. The assessment concluded that FONDI BESA has instituted a functioning environmental and social management system which was found commensurable with the level of environmental and social risks associated with its micro- and SME financing activities. The Fund Management appointed an officer and assigned relevant responsibilities to coordinate the environmental and social risk assessment process. In terms of ensuring the legal compliance of its Clients with environmental, labor and health and safety regulations and standards in effect the Fund is legally obliging its Clients to follow these requirements. The Borrower reported that it is not engaged in financing any activities contained in the Bank's Environmental and Social Exclusion List. Overall, it is considered that the Operation will contribute to promoting micro, small and medium businesses in Albania and positively impact on poverty alleviation, stimulate self employment, create new jobs and generate revenues.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org