Banks gave Albanian farmers 2.74 billion lek in loans last year. Compared to 2023, loans to the largest sector of the economy decreased by 90 million lek or 3.1 percent.
"The main factor is the lack of land certification, parcelization, high informality, lack of insurance, as well as the high cost of products so that business plans can be developed according to the requirements of financial institutions," said Agim Rrapaj, president of the Albanian Agribusiness Council.
Data from the Bank of Albania shows that in relation to the total loans given, agriculture accounted for only 0.72 percent, writes A2 CNN.
"This does not fill the gap created, but it makes it much easier. There should be an openness towards farmers from non-bank financial institutions, namely savings and loan societies," said Rrapaj.
The opening of the banking sector to agriculture is considered important by representatives of this sector, especially after the suspension of IPARD funds by the European Union and the reduction in the available budget.
"This does not fill the gap created, but it makes it much easier. I hope it is not only this, but also that financial institutions promised to support the sector with sovereign guarantees," said Rrapaj.
Although it remains the sector that contributes the most to the Albanian economy with around 22 percent of Gross Domestic Product, agriculture continues to remain an under-credited sector, almost abandoned by banks. (A2 Televizion)
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