July 4 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said it is providing 65 million euro ($67.8 million) unfunded bond guarantee to Raiffeisen Bank Albania to support local micro, small, and medium-sized enterprises (MSMEs).
The instrument will support lending to MSMEs, with at least 10% of the funds to be designated to green financing, the EBRD said in a press release on Friday.
The guarantee will be provided under the Guarantee for Growth mechanism and is linked to Raiffeisen Bank Albania's local currency sovereign bond portfolio, the EBRD added.
The project is in line with the EBRD’s dedicated technical cooperation programme with Albania's central bank, which is focused on aligning the local prudential framework with that of banks in the European Union. The programme is supported by the Luxembourg – ODA Technical Co-operation Fund.
Raiffeisen Bank is the second-largest bank in Albania in terms of loans, holding a 16.6% market share. It is wholly owned by Austrian banking group Raiffeisen Bank International AG.
($ = 0.9590 euro)
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