|
Within this mission, FAF-DC can respond
to demands for financing from rural as
well as urban based micro, small, and
medium sized enterprises.
The
Strategy
The strategy of FAF-DC is to provide its
shareholders with sustainable
profitability and growth of capital
through efficient lending practices.
This strategy entails capacity building
to bring in state of the art techniques
to management and staff, additional
financial resources, wider set of
products and services, etc.
FAF-DC’s mission is also to provide
customer-focused lending/financing
translated into credit services that
will maximize value and economically
empower new and existing customer, which
interrelates a distinctive customer
service strategy.
This may be the target of the strategic
investor, who will have to take into
account that
FAF-DC has taken over a well
proportioned portfolio dedicated mainly
for the development of long term assets
[investments i.e., new machineries and
equipments, processing lines, etc.] of
its borrowers, and to a lesser extent
for working capital [wages/salaries or
spending].
Thanks to a low cost liability structure
[mostly soft loans] of FAF-DC, there is
not a relevant risk in the short run
because most lending contracts are on
fixed interest rates. FAF-DC does not
experience a negative duration gap, and
developing existing and launching new
products is a real challenge for FDC,
due to the competitive risk of new
entrants [mostly commercial banks].
As informed, strategic investors are
required to maintain their equity for a
minimum period of three years, after
which the investor may decide to exit –
or if so desired, make use of an option
to buy into shares owned by the Republic
of Albania, partly or totally |
