The European Bank for Reconstruction and Development (EBRD) is supporting the development of private micro, small and medium enterprises (MSMEs) in Albania with a €3m loan to FondiBesa, a non-bank microfinance institution.

Established in 1994, FondiBesa is servicing about 18,000 clients. It focuses primarily on micro and small enterprises in the country’s urban and semi-urban areas.

EBRD said that its facility will be used to finance investment projects and working capital needs of MSMEs in Albania.

The credit line will help FondiBesa to diversify its funding base and will support the company in its drive to provide more affordable financing tools to small entrepreneurs.

The facility will be provided under the EBRD – Italy Local Enterprise Facility, aiming at broadening the outreach of financial institutions towards smaller business clients and micro enterprise in particular.

Since the beginning of its operations in Albania, the EBRD has invested over EUR550m in various sectors of the country’s economy, mobilizing additional investments of more than EUR1bn.