Agriculture is the sector least credited by banks, as it is seen by them as having a lot of risk. But it seems that the government has decided to change this fact. In a meeting with the Bank of Albania, Prime Minister Rama declared that financing for agriculture will be increased, with the aim of reducing poverty.
But what do the numbers say?
According to data, only 6.3 billion lek of loans were granted to agriculture last year, or 0.8% of total bank loans. As is clearly evident from the graph, financial support for this sector has been decreasing over the years.
But while farmers' access to the private banking sector has been almost impossible, the government has supported it with more funds? How much money has each farmer received on average, to understand the real assistance provided through the national agricultural scheme?
In total, around 67 thousand farmers have benefited for 2024, while the fund made available has been around 32 million euros. According to calculations, this amounts to 477 euros per farmer.
An insufficient amount to help farmers and the sector, which is not in its best days today. The weight of agriculture in the economy has been shrinking for years.
However, this sector still makes the highest contribution, reaching 16.2% of the Gross Domestic Product, employing 33% of the total workforce in the country.
Agriculture has already entered a downward cycle, influenced on the one hand by the decrease in the rural population due to internal and external emigration and, on the other hand, by the lack of state subsidies, which have worsened the climate in the sector, especially in livestock farming.
The problems are numerous and range from lack of funding, high costs, informality, and even a lack of labor. (A2 Televizion)
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