AASF follows a comprehensives approach addressing both supply and demand sides. AASF combines funding and/or risk-sharing support to participating financial institutions (PFIs) to increase lending to the agribusiness sector with support for agribusiness entities with business advice and know-how.by the Government of Albania.
AASF includes the following four pillars:
– Agribusiness Credit Lines as senior unsecured credit lines to PFls in Albania for on-Iending to agribusiness entities for medium-long term investments.
– Agribusiness Risk-Sharing Facilities as unfunded participation in a portfolio—based risk-sharing instrument covering up to 50% of the aggregate amount of a portfolio of outstanding eligible agribusiness Sub-Loans
– First Loss Risk Cover (“FLRC”) – a credit enhancement mechanism provided by the Govemment of Albania, covering the ﬁrst 20% of losses of the aggregate amount of Sub-Loans ﬁnanced with the proceeds of the Agribusiness Credit Line or Risk Sharing Instrument
- Technical Assistance (“TA”) program, which consists of two components:
A) Capacity Building for Participating Financial Institution TA:
Technical Assistance to PFls comprises customised and targeted support tailored to the needs and requirements of each PFI including with a focus on:
- Development of new products or enhancement of existing agribusiness products;
- Enhancement of underwriting policies and procedures for agribusiness lending;
- Staff training, potential operational/organisational changes to accommodate new focus on agribusiness lending;
- Introduction of innovative ﬁnancing schemes and delivery channels, processing, monitoring and reporting systems;
- General Facility implementation support.
In addition, awareness building seminars, agribusiness sector speciﬁc info sessions. in the form of marketing events for PFls, will be conducted.
B) Agribusiness sector-speciﬁc TA:
Advisory services to PFl’s sub-borrowers and potential sub-borrowers will be provided by the Advice for Small Business (ASB) team for the purpose of:
- Facilitating access to know-how and non-financial development services for agribusiness SMEs
- Access to markets through Market Development activities diagnostic services.
Exhibit: Structure of the Albania Agribusiness Support Facility