NEWSLETTER No. 9, February 2016

1

In this Issue

For more information on PRODAPS visit the web site

www.prodaps.al

Italian – Albanian Programme for Development of SMEs organized the third edition of

"Albanian SMEs Week", held during November 2015 in five main regions of the country

with the participation of over 300 Albanian enterprises. Gjirokastra meeting was attended

by Minister Ahmetaj, who praised the Italian-Albanian program for its support to the

private sector.

On 7 November 2015, under the

patronage of the Minister of Economic

Development, Tourism, Trade and

Entrepreneurship Mr. Arben Ahmetaj,

Programme Management Unit of Italian

Cooperation for Development of SMEs,

in Albania (PRODAPS & IASME), in

cooperation with the Albanian

Investment Development Agency

(AIDA) held at Hotel Çajupi in

Gjirokastra, a training workshop in the

frame of “SMEs Week”, in Albania.

The seminar was attended by 65 local

entrepreneurs coming from Gjirokastra,

Tepelene and Permet running mainly in

the facon industry, agro-processing,

artisans etc., representatives of the

private commercial banks, partner of

the program, as well as representatives

f rom reg ional depar tments o f

Agriculture and the Chamber of

Commerce and Industry of Gjirokastra.

This event aimed at gathering

entrepreneurs from Gjirokastra region

and, actors engaged in enterprise's

s u p p o r t , t o p r o m o t e f i n a n c i a l

instruments favoring Albanian SMEs, in

the form of grants or soft loans, with a

view on improving and increasing access

to finance and increasing competitiveness

of Albanian enterprises in order to better

respond to the internal, regional and

international market demands.

Minister of Economic Development,

Tourism, Trade and Entrepreneurship

Mr. Ahmetaj greeted the meeting and

praised Programme achievements in

support of private sector development.

He highlighted Italian government

efforts through PRODAPS and IASME by

providing 44 million Euro in the form of

grants and soft loans aimed at increasing..

PRODAPS Activities

“SMEs Week” in Albania

Programme PRODAPS and IASME was

presented during an informative seminar,

with SMEs representatives, in Gjirokastër.

With the participation of minister of

Economic Development, Tourism, Trade and

Entrepreneurship…………… Page 1,2

PRODAPS organizes SMEs week in

Vlore...................................................... Page 2

PRODAPS organizes SMEs week in

Korçë....................................................... Page 3

PRODAPS organizes SMEs in week

Shkodër................................................. Page 3

PRODAPS organizes SMEs week in Durrës

…..............................................................Page 3

Economic News

Economic growth is projected to reach 2.7%

in 2016………………….......................... Page 4

Bank of Albania: Monetary stimulus will

continue................................................. Page 4

Seminar “Italian Presence in Albania:

Perspectives of Development”............. Page 4

Activities with Partner Banks

Training Workshop with Union Bank staff for

implementation of Credit Scheme......... Page 5

Workshop with Veneto Banka staff for

implementation of Credit scheme ........ Page 5

Programe Results and Relevant Indica-

tors………........................................... Page 6, 7

Call for application................................. Page 8

Italian- Albanian Programmefor the Development of Albanian SMEs

MINISTRIA E ZHVILLIMITEKONOMIK, TURIZMIT,

TREGTISË DHE SIPËRMARRJES

Minister Ahmetaj in Gjirokastër, praised Programme

Minister Ahmetaj speaking at the “SMEs week”in Gjirokastër

continue on page 2

achievements in support of private sector development

“Italian government through PRODAPS and IASME provided 44 million Euro in the

form of grants and soft loans aimed at increasing employment and business lending as well as improving business

climate in Albania”

MINISTRIA E ZHVILLIMIT

EKONOMIK, TURIZMIT

TREGTISË DHE SIPËRMARRJES

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PRODAPS activitiesPRODAPS in collaboration with AIDA organized “SMEs Week” in: Vlora, Gjirokastra, Shkodra, Korça and Durrësi

Albanian SME’s Week Opening in Vlorë

On 30 October 2015, Italian

Albanian Programme for

Development of Albanian

S M E s ( P R O D A P S ) i n

collaboration with Albanian

Investment Development

Agency organized, in Vlore

opening of Albanian “SME

Week”, which will focus on

funding opportunities for

micro, small and medium

enterprises.

“SME Week “, started in vlora

and will continue at the main

districts of the country. The

event a ims to r i se a t

institutional level necessary

i n f o r m a t i o n r e g a r d i n g f i n a n c i a l

instruments and other opportunities, in the

form of grants or soft loans for

d e v e l o p m e n t a n d i n c r e a s e d

competitiveness of enterprises, in Albania.

In the main panel, chaired by Mr. Daniel

Guce, Director of SMEs and Exports, at

AIDA participated and presented Mrs.

Klodiana Gjenerali, Communication

Expert at PRODAPS, Mr. Arben Breshani,

President of the Chamber of Commerce

and Industry, Vlore, and Aelita Mani,

Consultant.

Discussion among experts and local

SMEs included funding schemes,

awarded in the form of grants or loans

soft, to increase access to finance and

improve the productive capacity of SMEs

as well as challenges faced by local

business community in their

e f for ts to become more

competitive in national and

international markets.

T h e m e e t i n g a i m e d a t

encouraging a discussion

between local SMEs on funding

opportunit ies offered in

Albania, through support

schemes in form of grants and

soft loans , provided by

PRODAPS.

This program is funded by the

Italian government through the

Italian Cooperation in Albania

to support the promotion of

lending in the sector of

production and processing, to

create a unique, long-term and

sustainable system, which stimulates

investment through access to finance of

SMEs.

The meeting continued with discussions

among AIDA, PRODAPS and participant

SMEs with identification of specific issues

and concerns related to business in the

region.

employment and business

lending as well as improving

business climate in general and

entrepreneurship in particular.

Participant in the panel, Mr.

Kino Buxheli, Director of

PRODAPS & IASME, Mr.

Gent i Beqir i , Execut ive

Director of AIDA, and Mr.

Maxim Hoxha, President of the

Chamber of Commerce Region

of Gjirokastra contributed by

delivering information on

different forms of support

offered in the development of

Albanian SMEs. Mr. Buxheli presented financial components of

the program, which are

designed to improve access to

credit of Albanian SMEs. He

said that SMEs are constantly

faced with difficulties in

getting access to finance, so the

major challenge is to ensure

that SMEs have access to

a d e q u a t e f i n a n c i n g .

"Programme overcomes such

c h a l l e n g e b y o f f e r i n g

financing with more favorable

conditions”.

Daniel Guçe, Director of SME

and Export at AIDA presented

grants funded by the Albanian

Government and managed by

AIDA in favor of Albanian SMEs.

continued from page 1

SME’s week in Gjirokastër

SME’s week in Vlorë

Minister Ahmetaj in Gjirokastër, praised

Programme achievements in support of private sector development

SME-s Week concludes in Durrës

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Shkodra is informed on PRODAPS financing schemes On November 20th, 2015

following activities organized

w i t h i n S M E s W e e k ,

Programme Management Unit

of Italian Cooperation for

SMEs Development in Albania

in collaboration with Albanian

Investment Development

Agency (AIDA) held at Hotel

'Grand Europa', in Shkoder

Albanian “SMEs Week”.

The purpose of the meeting is

to provide an integrated

framework of information

regarding supporting schemes in the form of grants and soft

loans offered through Italian Cooperation for Development in

support of micro, small and medium enterprises. Increasing

financing availability will enable SMEs to increase production,

improve technology, to develop their business and hire more

employees. This informative meeting also intended: To facilitate

networking and exchange of information between stakeholders;

To identify needs and concerns faced by micro, small and

medium enterprises so that, they can be planned for future action

as well as; To bring together

stakeholders and to discuss the

challenges and opportunities

facing the financing of micro,

small and medium enterprises.

The event was attended by 50

enterprises from the region of

Shkodra, including inward

p r o c e s s i n g s e c t o r, a g r o -

processing, manufacturers,

processors, wholesalers, artisan

representatives from the private

commercial banks and other

stakeholders concerned.

In the main panel participated Mr. Daniel Guce, Director SME and

Export, near the Albanian Agency for Investment Development

(AIDA), Mrs. Evis Kopliku, representative of the Ministry of

E c o n o m i c D e v e l o p m e n t , T o u r i s m , T r a d e a n d

Entrepreneurship(MEDTE), Mrs. Klodiana Gjenerali, Expert at the

Programme Management Unit of the Italian Cooperation for

Development of SMEs, in Albania, etc. Trainers delivered

presentation to inform the participants on the procedures for the

provision of grants and low-interest loans favoring SMEs.

PRODAPS benefits are presented in Korça

SMEs Week in Albania

On 13 November 2015, the

Programme Management

U n i t o f t h e I t a l i a n

C o o p e r a t i o n f o r

Development of Albanian

S M E s ( P R O D A P S &

IASME), in collaboration

w i t h t h e A l b a n i a n

Investment Development

Agency (AIDA) held at

Hotel Kocibelli, in Korce,

the informative seminar

"SMEs Week". The seminar was attended by 30 entrepreneurs from

Korca region, operating in the processing sector, agro-processing,

artisans etc., as well as representatives of the private commercial

banks, partners of the program. Present in the leading panel were

Mr.Kino Buxheli, director of PRODAPS & IASME and Mr. Daniel

Guce, Director of SMEs and exports, at AIDA. Meanwhile,

representatives of private commercial banks, partners of PRODAPS

actively contributed in the discussion panel. PMU Director, Mr. Kino

Buxheli presented the financial instruments of the Program,

designed, to improve access to credit for Albanian SMEs, to increase

their development. It offers an interest rate and a term of settlement

more advantageous for those SMEs who want to buy goods and

services of Italian origin Daniel Guce, Director of SME and Export, at

AIDA presented grant schemes funded by Albanian government

and managed by AIDA in support of Albanian SMEs. Following the

presentations, in a discussion panel, questions were addressed to the

representatives of AIDA, PRODAPS and private commercial banks,

offering opportunity to identify specific issues and concerns faced by

the business in this region.

On November 27th, Albanian “SME WEEK" stationed in Durres. The

seminar was attended by 50 participant enterprises coming from the

city of Durres, operative in the processing and production sector, SMEs

active in the economic sectors supported by the Programme. The

seminar was also attended by representatives from eight private

commercial banks, partners of the Programme.

The purpose of this activity was to encourage an open discussion and to

share ideas, between stakeholders, on the opportunities and innovative

solutions provided through PRODAPS support schemes, in form of

grants and Credit Line supporting SMEs.

Credit Line and Guarantee Fund of PRODAPS provide beneficial

financial conditions that include an interest rate up to 4 % for loans in

EUR and a coverage guarantee fund up to 60 % of the loan requested, for

investment projects carried out by specific categories of SMEs

(manufacturing sector, processing, agribusiness, SMEs exporting, and

for those SMEs located in less developed areas of the country, or the ones

that bring a positive impact in terms of creating employment

opportunities , reducing pollution or energy production from

renewable sources).

The meeting served as a platform for discussion, during which, experts

of PRODAPS, AIDA and MZHETTS addressed issues related to the

opportunities, conditions and the path that should be followed by

SMEs, in order to take advantage of financial opportunities in support

of their development as well as other forms of assistance provided in

support of Albanian SMEs.

Participants in the meeting appreciated the support of the Programme,

in obtaining soft loans as an important mean, to improve technology

and complete the production process. With the meeting held in Durres

was also concluded the third edition of "SMEs Week" in Albania, which

took place during the months of November and December in five main

regions of the country with the participation of 300 small and medium

enterprises.

SMEs in Korça

SMEs Week in Shkodër

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Economic growth is projectedto reach 2.7% , in 2016

T h i s y e a r f o r

Albania's economic

growth is projected

to be 2.7%. The

statement came

from Minister of

Economic Deve-

lopment, Tourism,

Trade and Entre-

preneurship Mr.

Arben Ahmetaj.

During a meeting organized by Council of Investment, Minister

Ahmetaj, by quoting the latest report of INSTAT, on economic

growth projected to reach 2:53% growth in the second quarter

has reaffirmed that the government expects economic growth

to 2.7% in 2016.

The Minister also stated that one of the government's priorities

is creation of new bankruptcy law. Regarding the operation

against tax evasion, the Minister confirmed that, data show an

increase in the number of cash registers and registration of new

businesses. By the end of last October, 26 thousand new

ventures were registered at National Register Center.

Governor of the Bank of

Albania, Gent Sejko

participated in the

annual meeting of the

International Monetary

Fund and World Bank

held in Lima, Peru.

Governor stated during

t h e m e e t i n g t h a t

monetary facilitating

policy pursued by the Bank of Albania is related to the stimulating

policies of for the banking system, in order to influence as much as

possible economic growth and financial stability of the country.

Representatives of the IMF and World Bank praised the positive

role of the policy pursued so far by the Bank of Albania, which has

contributed to the development and macroeconomic stability.

Seiko noted that Bank of Albania will provide maximum support

for monetary stimulus. During the meeting, Albanian banking

system had a positive ranking with a high level of capital and

liquidity.

Bank of Albania:Monetary stimulus will continue

Ministri i Ekonomisë, z. Ahmetaj Guvernatori i Shqipërisë, z. SejkoBankës së

Seminar: “The Italian presence in Albania, prospects of developments”

Within the promotional

initiative, “Italian Festival

2015”, on November 5th, at

Hotel Aragosta, Durres

was held the seminar “The

Italian presence in Albania:

prospects of develo-

p m e n t ” . U n d e r t h e

patronages of the Agency

ICE in collaboration with

the Italian Chamber of

C o m m e r c e a n d t h e

Chamber of Commerce

and Industry Durres, the

activity aimed to identify

the presence of Italy in

A l b a n i a , n o t i n g t h e

potentials in relation to the

prospects for attracting

f u r t h e r I t a l i a n

investments, mainly in the region of Durres.

The Italian Cooperation in Albania was

represented at the seminar by Mr. Kino

Buxheli, Director of the Italian Albanian

Program for the Development of Albanian

SMEs and Mr. Andrea Senatori, Director of

the Italian Development Cooperation

Office, in Albania.

In his speech, Mr. Senatori presented to

Albanian and Italian investors “Italian-

Albanian Programme for Development

of Albanian SMEs” PRODAPS, as one of

the main instruments of Italian

Cooperation in support of Albanian

entrepreneurship and entire Albanian

economy.

In the frame of this Programme, that

since 2009 is supporting, strategic sectors

with soft loans are financed 107

enterprises with a total

amount of 23, 5 million

Euro. New job created

thanks to investments

m a d e p o s s i b l e b y

PRODAPS are satisfa-

ctory, compared with the

funds available to the

Albanian SMEs.

He added that within the

Program is approved an

additional fund of 15

million euros to support

t h e p r i v a t e s e c t o r

development, in Albania.

The additional Fund

demonstrates the success

of PRODAPS and its

promising future at the

service of the Albanian

economy. "

Italian Cooperation is currently the main

donor for private sector development in

Albania. Through PRODAPS, Italy

supports the economic development of

A l b a n i a b y p r o v i d i n g f i n a n c i n g

opportunities, required by economic

development but also examples and best

practices of technology and doing business,

gained by Italian experience SMEs sector.

Seminari për investimet italiane në Shqiperi organizuar në Durres

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On November 10th,

2 0 1 5 , I t a l i a n

Albanian Program

for Development of

A l b a n i a n S M E s

( P R O D A P S )

organized in hotel

"Stela" in Tirana, a

training workshop

for employees of the

Union Bank.

T h e w o r k s h o p

focused on the role

of the bank, in the

implementation of

the requirements of the "On Lending

Agreement" and, Improved Scheme of

Guarantee Fund: Participation Agreement.

Steering panel was attended by Mr. Kino

Buxheli, Director of Italian Program for

Development of Albanian SMEs, in

Albania, Ms. Alma Nathanaili, Financial

Consultant of Creative Business Solutions

(CBS) and Ms. Briolda Jahaj, Financial

Expert of the Italian-Albanian Programme

for the Development of SMEs.

The purpose of the workshop was to assist

in the qualification and training of the

Workshop with Union Bank staff for implementation of credit guarantee fund schemeActivities with Partner Banks

Workshop with Union Bank

“The aim of PRODAPS

workshops with Partner Banks is

to strengthen the role of banks in

increasing access to Credit Line

and Guarantee Fund”

Pursuant to implementation of the

“Italian Albanian Programme for

Development of Albanian SMEs” –

PRODAPS, Programme Management

Unit ( PMU ) held on 14 January 2016, at

the training center of the Veneto Banka,

in Tirana , a training workshop them on

"Improved scheme of Guarantee Fund:

the Participation Agreement and its

implementation by the Bank " .

The workshop was moderated by Mr.

Kino Buxheli, Director of Italian

A l b a n i a n P r o g r a m m e f o r

Development of Albanian SMEs and

participated by Ms. Alma Nathaniel,

Financial Consultant of Creative Business

Solutions (CBS) and Ms. Briolda Jahaj,

Financial Expert of the Programme

Management Unit of the Italian- Albanian

SMEs Development.

The purpose of workshop was to discuss

changes to the credit guarantee scheme and

to expand knowledge of Veneto Banka staff

in the field of management and

implementation of credit guarantee

scheme. The experts presented these

new changes, aimed at improving

Guarantee Fund scheme, to be

implemented by the bank in support of

Albanian SMEs; the eligibility criteria of

projects of SMEs; Concrete bank role in

the selection of projects; making

procedures and documentation; The

overall analysis of the implementation

of the program so far, etc.

Besides the presentation of the

improved Scheme of Guarantee Fund,

an open discussion took place through

the development of exercises and key

s t u d i e s o n t e c h n i c a l i s s u e s

e n c o u n t e r e d d u r i n g t h e

implementation of the Credit Line and

Guarantee Fund.

In this workshop were trained 18

employees of the Veneto Banka coming

from Albania's main cities, in different

profiles as Branch Directors, Operations

Directors, customer advisor, customer

service specialists, etc.

This training took place following

training seminars that PRODAPS is

organizing with the staff of the partner

banks for strengthening the role of

partner banks in increasing access to

Credit Line and Guarantee Fund in

support of Albanian SMEs.

National Commercial Bank staff.

Experts presented the "On Lending

Agreement" and the improved scheme of

Guarantee Fund. Main topics discussed

were related to the stages and techniques

of implementation and drafting

documentation of SMEs projects within

the Italian Albanian

P r o g r a m m e f o r

D e v e l o p m e n t o f

A l b a n i a n S M E s

(PRODAPS).

T h i s t r a i n i n g

workshop took place

following training

s e r i e s h e l d b y

P R O D A P S i n

collaboration with the

partner banks to

strengthen the role of

banks in increasing

access to Credit Line

and Guarantee Fund.

Workshop was attended by 15 participants,

staff of Union Bank coming from different

cities of Albania.

During the training were organized several

work group, during which participants

applied their knowledge and at the same

time clarified and overcome any difficulties

encountered during their work.

Training for capacity building and training

of staff of the partner banks will continue to

develop the program with partner banks in

the months ahead.

The workshop with Veneto Bank

Workshop with Veneto Bank staff for implementation of credit guarantee fund scheme

6

Credit Line and Guarantee Fund in favor of SMEs

Financed projects: In numbers and amount disbursed in years

Financed projects: By entreprize category based onSMEs size: (in percentage on total number of loans)

Financed projects: The amount disbursed

by Banks (in percentage)

Financed Projects: According to sector of activity and category based on the SME size

RESULTS, ACTIVITIES AND RELEVANT INDICATORS

Financed projects Amount Disbursed (mln Euro)

Program for Development of Private Sector, in Albania - PRODAPS is a joint initiative of the Italian Government and the Albanian Government,

created to support financing needs for investment, business expansion and technology improvement, of Albanian small and medium

enterprises.

With 25 million Euro soft loans and 2.5 million Euro fund in the form of a guarantee to ensure 50 to 60 % of risk associated with SMEs lending, the

Program collaborates with eight private commercial banks, partner of the Programme offer those loans for the purchase of machinery,

equipment and services of Italian origin.

The main objective of PRODAPS is to strengthen the capacity of local entrepreneurs with particular reference to the Albanian SMEs, facilitating

the creation of an interaction mechanism between the Bank lending system and SMEs, as well as promoting sustainable production standards

and improved working conditions. In this regard, Programme Management Unit (PMU) in cooperation with Italian Cooperation for Development

Office, in Albania and the Ministry of Economic Development, Tourism, Trade and Entrepreneurship, has conducted a series of activities, training

and seminars with Business Associations, Chambers of Commerce and Industry, banks and entrepreneurs, as well as business service providers

for SME projects.

Since the official start of the Programme, in 2009 until 31 January 2016, about 107 investment projects of Albanian SMEs have been financed by

Credit Line, with a total disbursement of 23.5 million Euro, as well 2 SMEs projects have been supported with guarantee by the Guarantee Fund of

the Programme, with an amount of 232,000 Euro.

Thanks to PRODAPS, access to credit market of SMEs has improved. Albanian banking system has made significant progress, especially in the

evaluation and management of loans for micro, small and medium enterprises and Start –up projects, which are especially vulnerable in

approaching credit market.

In 2015, Program has financed 57% more projects in comparison to year 2013 and 10% more projects than year 2014.

7

Financed Projects: Amount disbursed according to bussiness activity (in percentage)

Geographical distribution of projects (in percentage)

Financed projects: Number disbursed according tobussiness activity

Geographical Distribution of projects in Tirana - Durres and the Rest of the Country (in percentage)

Financed Projects: Average amount of financing bysectors (in mln Euro)

Financed start-up projects: (in number according to sector of activity)

Geographical distribution of Start-up projects in Tirane-Durres and the rest of the country (in percentage)

Distribution of projects according to loan amount range

VENETO BANKA SH.A.

Officials at these banks will let you know which documents you need to complete for the project. After reviewing your project, if

approved, the bank will request the release of funds from Italian-Albanian Programme for the Development of Small and Medium

Enterprises (SME) in Albania.

N A T I O N A L B A N K O F G R E E C E

6

ITALIAN -ALBANIAN PROGRAMMEFOR SMALL AND MEDIUM DEVELOPMENT IN ALBANIA

n

Where to Apply?You may refer to one of the Private Commercial banks partner of the Programme, which are: National Commercial Bank(BKT); Raiffeisen Bank; Intesa SanPaolo Bank; Tirana Bank; Veneto Bank, national Bank of Greece (NBG) and Union Bank. Credins Bank;

Loan Conditions Interest rate 4% in Euro

5% in Lekë

Loan Repayment Period: 3-8 years

Grace Period: 1-2 years (interest only)

uronë E

4%

Italian Albanian Programme for Development of Albanian Small and Medium Enterprises (PRODAPS) continues the application process

for soft loans in favor of SMEs.

In terms of Credit Line, PRODAPS offers a very low interest rate and repayment period, more favorable than SMEs credit market

targeting those SMEs who want to buy goods and services of Italian origin.

§ Be legally registered in Albania;

§ Have not less than 51% of the ownership held by Albanian Citizen;

§ Have an annual turnover not higher than 5 million Euro;

§ Have not more than 250 employees

Eligibility criteria for SMEs:

Call for application Soft loans to grow your business !

Ministry of Economic Development, Tourism, Trade and Entrepreneurship, Programme Management Unit (PMU),

Blv. “Dëshmorët e Kombit”,1001, Tirana, Albania

+355 4 2366811 / +355 4 2366449info@prodaps.alwww.prodaps.al

Address:

Tel/Fax: E-mail: Web: