Germany providing 5 mln euro to back agriculture financing in Albania | MED-Amin network |
TIRANA (Albania), September 25 (SeeNews) – Germany will offer 5.0 million euro ($5.9 million) through its development bank KfW  to increase the capital of Albania’s Rural Credit Guarantee Fund (RCGF) in order to improve financing of projects of local farmers, the German embassy in Tirana said.

The fund has already supported around 1200 farmers to secure loans and finance their projects over the past three years.

RCGF was established in 2015 with the aim to facilitate access to funding for farmers and entrepreneurs in rural areas with little or no collateral. The fund supports its partner financial institutions through a risk-sharing mechanism.

Low expenditures and structural problems such as the small size of local farms and crop fields are some of the main challenges Albania faces in the area of agriculture.