EBRD grants €10m to enhance Tirana Bank’s trade finance services

Core Insights - The European Bank for Reconstruction and Development (EBRD) has initiated a financial package of up to €10 million ($11.6 million) for Tirana Bank to enhance its trade operations, marking the first partnership between EBRD and Tirana Bank [1] Financial Package Details - The financial package includes a €5 million senior loan under the SME Reboot Programme aimed at supporting green investments in Albania's micro, small, and medium-sized enterprises (MSMEs) [2] - Local MSMEs can receive cashback of up to 10% of the loan amount to facilitate green investments, supported by contributions from Norway, Luxembourg, Switzerland, and the US through the EBRD's Small Business Impact Fund, with additional backing from Denmark [2] - Tirana Bank will also receive up to €5 million under the EBRD's Trade Facilitation Programme (TFP) to support trade among EBRD-operating countries, including guarantee provisions to international confirming banks to mitigate transaction risks [3] Strategic Importance - EBRD's managing director for Central and South-Eastern Europe emphasized that this collaboration is crucial for promoting sustainable growth, enhancing regional competitiveness, and assisting local businesses in aligning with international standards [4] - The combination of financial tools and technical assistance is expected to unlock new opportunities for innovation and resilience in Albania's private sector [4] EBRD's Historical Context - EBRD has been active in Albania for over three decades, with investments exceeding €2.3 billion across various sectors [5] - Tirana Bank, established in 1996 as Albania's first private bank, provides financial services to both individual and corporate clients [4]