OTP Bank Albania signs financing agreement with RCGF

OTP Bank Albania signs financing agreement with RCGF

OTP - Bordi

OTP Bank Albania continues to be part of the RCGF program (Rural Credit Guarantee Foundation) for the financing of loans in the agricultural sector as well as other sectors. In December 29th, 2020, OTP Bank Albania signed the amendment of the cooperation agreement with RCGF in assisting the businesses impacted by COVID-19.

This agreement has been signed by Mr. Bledar Shella, Chief Executive Officer of OTP Bank Albania and Mr. Bajram Korsita, Chief Executive Officer of RCGF.

This agreement offers better financing conditions for the businesses that will be part of this financing scheme and it aims to create better financing opportunities for a segment of businesses and rural markets. Part of this agreement is the fund of EUR 16.7M (from EUR 10M that were in the first agreement) for risk sharing between OTP Bank Albania and RCGF.

In addition, this agreement enables the facilitation of the lending process for a segment of businesses and rural markets, which do not meet the criteria of commercial banks.

The term of the agreement has been extended from December 2020 to December 2022.

The businesses that will benefit from it are those impacted by COVID -19 and with an annual turnover of up to 1.5MEUR (from 800KEUR that was defined in the first agreement).

The guarantee offered for each loan that will be part of this scheme is 70%.