Credit guarantee schemes in Albania and their importance for developing SMEs


  • Besiana Lika University of Tirana
  • Llesh Lleshaj University of Tirana



Credit guarantee scheme, financial support, financial effect, small and medium enterprises, Albania


Credit guarantee schemes mitigate the perceived risks of lending to businesses, especially small and medium enterprises (SMEs). This encourages financial institutions to extend credit to entities that might otherwise face loan challenges. SMEs often face challenges in obtaining financing due to their size and limited assets. Credit guarantee schemes provide a means for these enterprises to secure funding, fostering their development, innovation, and contribution to overall economic growth. SMEs benefit from credit guarantee programs by expanding their operations, investing in technology, creating employment opportunities, etc. Credit guarantee schemes in Albania play a crucial role in supporting SMEs. These schemes are designed to address SMEs' challenges in accessing traditional financing due to limited collateral or credit history. This paper examines the impact of credit guarantees for a group of SMEs in Albania in the 2019-2021 period. The data on SME beneficiaries has been collected from one credit guarantee scheme that first started its activity in 2015 to encourage financial institutions to provide financial services to businesses on a sustainable basis. The SMEs part of this study have been financed by five different banks and have the highest guaranteed value during 2020. With increased access to financing, SMEs have invested in business expansion, such as purchasing new equipment, expanding production capacity, or entering new markets.

Author Biographies

Besiana Lika, University of Tirana

Department of Finance, Albania

Llesh Lleshaj, University of Tirana

Department of Finance,  Albania




How to Cite

Lika, B., & Lleshaj, L. (2023). Credit guarantee schemes in Albania and their importance for developing SMEs. AS-Proceedings, 1(7), 243–253.