#Agriculture #AgriculturalCredit #EconomicDevelopment #LegalProjects #FinancialSector #Agribusiness #LandCertification.
Albanian agriculture has had an encouraging period, as banks have offered farmers loans in the amount of 568 million ALL during the month of October. This figure marks an increase of 17.8%, compared to the previous year. However, despite the increase in credit, the agricultural sector has suffered major challenges, accounting for only 1.85% of total loans.
Agim Rrapaj, chairman of the Albanian Agribusiness Council, has highlighted some key challenges that hinder the development of agriculture. Lack of land certification, parcelization, high informality and lack of insurance are some of these challenges. According to him, the high cost of production is another challenge that prevents farmers from meeting the demands of financial institutions.
In the span of 10 months, Albanian farmers have managed to get 2.2 billion ALL in loans, compared to 1.8 billion ALL in the same period a year ago. This figure shows that the agricultural sector is entering the focus of financial institutions, especially after the changes in IPARD funds from the European Union and the reduction of the budget for the sector in the coming year.
To address the needs of the agricultural sector, socialist MP Erion Braçe has proposed the draft law “On Commercial Receipts on Agricultural Products.” This bill aims to encourage manufacturers to send goods to banks after handing over to collectors, enabling them to obtain loans. This is a positive step, however, according to Rrapaj, other steps should be taken by non-bank financial institutions.
In order to increase the support in the sector, Rrapaj says that it is important to have an opening from savings and loan companies, not only from traditional banks. It also emphasizes the need for sovereign guarantees to secure the agricultural sector.
