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Fondi Besa SME 3

Albania | Financial Institutions

Identification Code:: OP/18/0060
Total Operation Cost:: 10.000.000 EUR
Maturity:: 36 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 EUR – 08 Feb 2019
: BSTDB Signed Amount – Signed Date

10.000.000 EUR – 21 Mar 2019
: Status:
Completed
Description and Purpose of the Operation:: Fondi Besa SME 3
Countries of Operation:: Albania (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: 3rd 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 that MSMEs are benefiting from financing from the operation engaged 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.
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org