Albania launches national SME financing initiative
Bank of Albania Governor Gent Sejko announced a national initiative to boost financing for micro, small, and medium-sized enterprises. The Memorandum of Understanding aims to increase credit access for these vital segments of the Albanian economy.
A concerted push for business growth
Governor Gent Sejko highlighted the signing of a Memorandum of Understanding (MOU) for the 'National Initiative for Financing Micro, Small and Medium-Sized Enterprises and Farmers.'
This MOU aims to foster robust information and idea exchange between public institutions and the banking sector.
The goal is to establish a solid foundation for designing effective instruments that will significantly increase access to credit for these crucial segments of the Albanian economy.
Sejko noted that the Bank of Albania has already approved and implemented a dedicated Financing Programme for Small and Medium-Sized Enterprises, specifically designed to reduce credit costs.
Complementing this, the Albanian Government has introduced a Sovereign Guarantee Scheme, which directly mitigates credit risk for operators within the agricultural sector.
These existing instruments, combined with the new initiative, are seen as providing a strong framework for addressing the persistent financing challenges faced by SMEs and farmers, unlocking their potential for faster growth and enhanced productivity across the country.
Lending expands, but gaps persist
The Albanian banking system has shown considerable progress in expanding lending, with the private sector credit portfolio reaching ALL 907 billion by March 2026, a significant increase from ALL 575 billion five years prior.
Over the past two decades, private sector credit grew at an average annual rate of 15%, with ALL 423 billion in new credit granted in 2025 alone.
Bank credit remains the primary source of financing for Albanian businesses and households.
However, despite this positive trend, micro, small, and medium-sized enterprises (SMEs), which form the backbone of the Albanian economy, still face relatively limited access to credit.
Expanding financing for this segment is considered an important national priority to unlock faster growth, boost overall economic productivity, and contribute to the broader well-being of society.
A shared responsibility for growth
The progress over the past two years provides an encouraging foundation for further development.
However, the banking industry must intensify its focus on the SME and agricultural sectors, recognizing their significant potential for growth without compromising prudential standards.
This collaborative approach is crucial for designing effective policies that support Albania's sustainable, long-term economic advancement.