Project Structure

Project Structure

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 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