No crisis for micro credit

29/10/2011 00:00

While the financial industry is suffering from the current crisis, one
of its segments that involves loans for small businesses and farmers,
the micro credit, seems in good conditions.

“By the end of 2010, the endangered portfolio of the Ltd Union was 3.8%, which is a very interesting figure”, declared Zana Konini, director of the Albanian Union in Credit Savings.

The main advantage of the micro credit is that it doesn’t require collateral guarantees. By the end of 2010, there are 58.000 individuals and small businesses that have profited from this credit that has grown each year more.

“The targets of the micro finance are physical and juridical individuals who have difficulties to get service from the banking system. The baking system is not beneficial to them for some reasons. By the end of 2010, the total of the credit portfolio was 14 billion ALL, for all microfinance institutions”, Konini declared.

The director also added that the demand for small loans remains high, especially in farmers. While in urban areas it is divided according the target, rural areas have no financial interventions and the need for loans remains far from being fulfilled, according to Konini.

Many other countries with small revenues have turned the micro credit into one of main financing means for poor farmers, small businesses, individuals and families.

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