Banks gave Albanian farmers 2.4 Lek of credit until October. Compared to a year ago, the loan for the largest sector of the economy increased by only 200 million ALL or 9 percent.
However, despite the increase in support, in relation to the total loans granted, agriculture took only 0.78 percent.
"The main factor is the lack of land certification, parcelization, high informality, lack of insurance, as well as the high cost of production so that business plans come out according to the requirements of financial institutions," Agim Rrapaj told A2 CNN. the chairman of the Albanian Agribusiness Council.
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 of the available budget.
"This does not fill the void created, but it greatly eases it. There should be an openness towards farmers also from non-bank financial institutions, that is, savings and loan companies", said Rrapaj, for A2 CNN.
To encourage lending to the sector, Socialist MP Erion Braçe proposed the draft law, "On Commercial Receipts on Agricultural Products." According to the draft law, the commercial receipt would enable the producer to deliver the goods to one of the banks in the country, being able to get a loan, after the goods have been delivered to the collector. But the little initiative has worked.
"This does not fill the void created, but it greatly eases it. I hope this is not the only thing, but the financial institutions also promised to support the sector with sovereign guarantees", Agim Rrapaj declared for A2 CNN.
Although it remains the sector that contributes the most to the Albanian economy with about 22 percent of the gross domestic product, agriculture continues to remain an under-credited sector, almost abandoned by banks. (A2 Televizion)
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