The topic of today’s discussion at the Bank of Albania was “Agricultural Sector Financing,” where the focus was on identifying strategies and developing tools for achieving significant progress in this area.

With the participation of Prime Minister Edi Rama, Minister of Agriculture and Rural Development Anila Denaj, Minister of Finance Petrit Malaj, Governor of the Bank of Albania Gent Sejko, along with leaders and representatives from the country’s banking sector, the discussion thoroughly explored a new and innovative approach aimed at revitalizing agricultural financing through financial institutions.

Following an extensive consultation process between the government and banking sector representatives, Prime Minister Rama announced that “today, we are marking an encouraging and optimistic milestone with the decision of the Bank of Albania to open a new innovative financing line of 250 million euros for small and medium-sized enterprises, focusing on agriculture. Additionally, an agreement was signed between the Central Bank and second-tier banks to implement this financing line, prioritizing investment projects in the agricultural sector.”

With the government acting as a guarantor, investments will be supported in areas such as greenhouses, agro-processing, fishing, aquaculture, agrotourism, and technological innovations aimed at fostering rural development.

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Prime Minister Edi Rama: First, I would like to sincerely thank the Governor and the team at the Central Bank, as well as all the representatives from the second-tier banks who are present, for a process we began some time ago and are now concluding in the most encouraging and optimistic way. This is through the decision of the Bank of Albania to launch a new innovative financing line of 250 million euros for small and medium-sized enterprises, with a focus on agriculture, and the agreement signed between the Central Bank and the second-tier banks to implement this financing line, prioritizing investment projects in the agricultural sector.

This is undoubtedly a significant and promising step for the country, considering two key factors.

Firstly, we have set an extremely ambitious goal: by 2030, we aim for agricultural exports in Albania to reach 1 billion euros. We’ve already quadrupled our initial target, as we are currently above 500 million euros in exports.

Secondly, this is essential for Albania as a European Union member, where, as the Minister of Finance briefly mentioned, the challenges of competition and adapting to even higher standards and regulations represent a substantial hurdle.

When we first held these discussions, I am sincerely grateful to all the representatives of the banking sector here because I learned a great deal about the reasons behind the hesitation in financing agriculture. However, I also saw a genuine willingness to work together, reach a common understanding, and share the burden of risk.

With a full understanding of the hesitation, or more precisely, the reasons behind it, but also with the conviction that through collaboration and mutual support between the Central Bank, second-tier banks, and the government, many of these concerns can be overcome, I believe that today we are at a point where we can all feel optimistic. This is because, as a result of this process, a series of meetings, and direct communication between us and you, we now have a product: the new financing line from the Bank of Albania, backed by the government, which will cover 70% of the loan principal through the Sovereign Guarantee. Combined with the bank’s program, we can confidently tell all those waiting for more financing, seeking more financing, or in need of more financing in the agricultural sector, that the interest rates will be highly attractive. On our part, with the knowledge gained from the hard work behind 500 projects—thanks to the collaboration between the Agricultural and Rural Development Agency and the sector—we will be able to support farmers and rural entrepreneurs. This will allow us to accelerate the volume of financing and investments much faster than ever before, with the goal of reaching 1 billion euros in exports.

With 1 billion euros in exports, we can elevate agriculture to the same level of sustainable achievements for Albania as a small, but undeniably dignified, new member of the European Union, showcasing strong performance in the broader EU framework.

The 500 projects completed in the areas jointly defined with the European Commission serve as a strong guarantee for us in terms of knowledge, experience, and the support from second-tier banks, which bring expertise in evaluating the projects, their feasibility, and sustainability.

At the same time, I believe the 70% reduction in collateral requirements will be a significant relief for banks, who, in our repeated meetings, have made it clear—their willingness to support this initiative.

Investments in greenhouses are a priority for us. As the minister highlighted, the area covered by greenhouses has grown significantly, but the potential for expansion is much greater. Similarly, agro-processing investments are a priority. We urgently need to process products locally and increase the volume created within the domestic value chain.

Agrotourism is another priority, without a doubt, and we will send it to you as soon as it is approved by the Albanian Parliament. It has already passed all other processes, including government approval, and the Mountain Package. The Mountain Package introduces new flexibility regarding collateral requirements, allowing those who wish to invest in rural Albania, particularly in hilly and mountainous areas, and who face challenges with property titles, to have full guarantees for their investments. This will be achieved through a fast and simplified process for recognizing land use rights and subsequently securing property titles through investment.

I have great confidence that the Mountain Package will lead to increased demand for agrotourism because we are seeing more and more interest from Albanians abroad to invest in their regions of origin. Property titles are the primary issue, and at the same time, the package offers significant fiscal attractiveness as it provides a full guarantee of 100% tax exemption for a 10-year period. We believe this will create a quick competitive advantage, as it will apply to the first 500 applicants. In other words, those who apply first will benefit first from this framework, while others will be subject to the same rules as everyone else.

These are the main points I wanted to highlight, and I sincerely thank you all once again for your efforts. I also want to thank the Governor and his team for stepping beyond the traditional, classical thinking of the Central Bank, adopting best practices from central banks in Europe.

It is crucial to stay informed about this new development, as, despite significantly easing the burden, it is still necessary to prove that the loan will be repaid. There are still formalities to complete and responsibilities to be assumed, so the need for proper information is essential.

Therefore, I hope that now, with the signing of the agreements between the Central Bank and second-tier banks, work will begin intensively on spreading the necessary information.

Thank you very much!

And one more thing—my apologies, but I need to leave as I have a trip abroad. I hope you understand. This is an important moment because we need to receive confirmation of an extremely valuable event for Albania: Albania has been chosen to host the World Congress of Law in 2027.

Thank you again!