Albanian gov't approves state guarantee for processing industry-Xinhua

Albanian gov't approves state guarantee for processing industry

Source: Xinhua| 2024-04-10 23:21:45|Editor: huaxia

TIRANA, April 10 (Xinhua) -- A state guarantee of four billion Albanian lek (around 42.6 million U.S. dollars) was approved by the country's government for the processing industry sector Tuesday.

The funding was given the green light by the Council of Ministers of the Government of Albania, and will be used mainly for automation of production lines. It will also be used for liquidity for the purchase of raw materials for the processing industry, said the Ministry of Finance in a statement.

The clothing industry is believed to be the major beneficiary. Minister of Finance Ervin Mete disclosed recently during a meeting of the National Economic Council that details regarding instruments of the guarantee for the clothing processing sector would be approved by the government soon.

According to the Ministry of Finance, the value of the guarantee will cover 70 percent of loans from the banking system, with a comparatively low margin above the base rate.

While Albania's real estate and construction sectors have experienced robust growth recently, agriculture and industry, the two most important sectors in its economy, experienced a decline in growth in 2023. (1 U.S. dollar = 93.9 Albanian lek)