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MSME Finance Facility to NOA

Albania | Financial Institutions

Identification Code:: OP/20/0035
Total Operation Cost:: 2.000.000 EUR
Maturity:: 36 months
Operation Status:: BSTDB Approved Amount – Approval Date

2.000.000 EUR – 05 Nov 2020
: BSTDB Signed Amount – Signed Date

2.000.000 EUR – 01 Dec 2020
: Status:
Completed
Description and Purpose of the Operation:: A medium-term facility to NOA to be on-lent to eligible micro and small businesses, mainly farmers, who are significantly challenged by the impact of the COVID-19 pandemic. By working with NOA, BSTDB will be able to reach a larger number of MSMEs in Albania and contribute to the real economy development. Through this loan the BSTDB will directly support business growth, liquidity and improved client service of NOA, and indirectly will promote job creation, income generation, and positively impact on poverty alleviation.
Countries of Operation:: Albania (100,00%)
Financial Product:: SME's
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Established in 1998, NOA sh.a. is one of the largest microfinance institutions in Albania. Its customers are served by 260 employees, through a national network of 25 branches, covering almost 90% of the country. The company provides its financial products through mobile and digital solutions, increasing the rapidity and reach for its customers.
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 of the operation engage in export activities, there will be regional cooperation benefits. The operation is consistent with sector and operation priorities outlined in BSTDB’s Medium Term Strategy and Business Plan 2019-22 (MTSBP) and the Country Strategy for Albania 2019-2022.
Environmental Classification and Impact:: The Borrower has instituted a basic environmental and social management system consisting of internal policy, procedures and rules and has integrated it in the general portfolio management. All transactions to be financed under the above-mentioned loan shall be subject to BSTDB’s Environmental and Social Policy
Operation Leader:: Financial Institutions I
E-mail:: fi1@bstdb.org