Tirana, December 7, 2015
After its establishment and the announcement that the National Guarantee Fund worth EUR 300 million will be implemented during 2016 in the agriculture sector has received the attention of experts, according to which this fund will have an important impact in the development of this sector.
Through the National Guarantee Fund the government commits to guarantee lending in favorable conditions to farmers or individuals that want to invest in the agriculture sector or the increase of employment in rural areas.
Experts are of the opinion that the implementation of many funding schemes in the agriculture sector will develop also the agro processing sector and will increase the number of employees in this field. The application of funding schemes that decrease the risk of lending to businesses that operate in the sector will increase and boost lending to this sector.
They advice the government to consult with farmers, to inform and train the staff of banks that will provide loans to farmers since lending to this sector possesses high risks. Figures issued by Bank of Albania show that lending to agriculture was estimated to be 1.6% of the total amount of lending to businesses.
News source/photo credits: ATA
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