PRODUCTS - CREDIT SERVICES

FAF-DC’s target group is micro, small and medium sized enterprises (MSME’s). FAF-DC does not provide consumer loans and all its outstanding loans are business loans only.

The credit services include loans for investments and loans for working capital. Further details can be seen from the below table:

 

Maximum loan size	Normal maximum loan size is LEK 20 million (USD 200,000).Larger loans may be accepted in special cases.
Minimum loan size	LEK 50,000 (USD 500)
Maximum repayment period	Normal maximum repayment period is 5 years. In special cases repayment periods at 7 years may be accepted.
Collateral arrangements a)	All projects which are to be financed by FAF-DC must be thoroughly appraised and must, to be eligible for financing, be commercially viable without subsidies or other privileges. The borrowers must provide collateral, which should be valued at at least 1.5 times the size of the loan.

a) All FAF-DC’s outstanding loans are secured as described.

FAF-DC’s credit activity, inclusive of the appraisal of the individual projects, is based on established policies and guidelines which includes all relevant aspects and which are in line with international standards for similar institutions. The present credit policy guidelines were approved by BoS on 13^th January 2009 and the Credit Manual was approved by BoS on 15^th January 2009.

FAF-DC is using Albanian Accounting and Reporting Standards which is in wide compliance with International Accounting and Reporting Standards.