December 20 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Wednesday that it signed an agreement with Raiffeisen Bank Albania for an unfunded guarantee of 35 million euro ($38.3 million) to cover the risk of non-payment of local currency sovereign bonds held by the Albanian bank.
The agreement aims to free up capacity for lending to Albanian micro, small and medium-sized enterprises (MSMEs) and corporates, the EBRD said in a press release. The guarantee’s initial end-day has been set for March 31, 2027.
At least 20% of the guarantee amount will be allocated towards sub-projects eligible as per the EBRD’s Green Economy Transition initiative.
Raiffeisen Bank Albania, a unit of Austrian banking group Raiffeisen Bank International, was the third largest lender in terms of assets among eleven local banks in the third quarter, according to the Albanian banks' association.
($=0.913 euro)
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