Journal of Food, Agriculture and Environment

Vol 11, Issue 1,2013
Online ISSN: 1459-0263
Print ISSN: 1459-0255

The role of microcredit institutions of agriculture sector in Albania


Dori Risilia, Ina Pagria *, Irma Tabaku, Edmond Kadiu

Recieved Date: 2012-11-08, Accepted Date: 2013-01-22


The seasonal nature of agricultural production, the relatively high risk due to the volatility of production from one year to another, but also the prices of agricultural products, small  and fragmented farms, the problems and difficulties in securing ownership of the collateral, low levels of technology used are some of the reasons that have generated a non-liberal policy of banks and other financial institutions related to agriculture lending. This has led to the shrinkage of the financial power of farmers that constitute more than half the employed population and that account for approximately 19 percent of National Product. Development of the agricultural sector, in terms of market economy requires a financial support for realization of investments. Increase of agriculture mechanization and the importance of the growing needs of the agro-industry and services in the rural areas sectors seek to provide a natural market to insure financing services for agricultural enterprises. In conditions, when the agriculture sector has always been considered as priority and the highest potential growth, it becomes necessary to explore other ways of financing farms and rural enterprises. Specialized rural financial institutions are more successful in attracting funds and fulfilling the credit needs of farmers. In this context, microcredit financial institutions represent perhaps one of the most efficient solutions that farmers can adopt to fund their activities. This paper examines the possibility that rural microfinance institutions can become a powerful instrument in the field of financing farmers and rural enterprises and aims to highlight the benefits that would create the agricultural sector.


Microcredit, financing services, savings, agriculture

Journal: Journal of Food, Agriculture and Environment
Year: 2013
Volume: 11
Issue: 1
Category: Agriculture
Pages: 353-356

Full text for Subscribers

Note to users

The requested document is freely available only to subscribers/registered users with an online subscription to the Journal of Food, Agriculture & Environment. If you have set up a personal subscription to this title please enter your user name and password. All abstracts are available for free.

Article purchasing

If you like to purchase this specific document such as article, review or this journal issue, contact us. Specify the title of the article or review, issue, number, volume and date of the publication. Software and compilation, Science & Technology, all rights reserved. Your use of this website details or service is governed by terms of use. Authors are invited to check from time to time news or information.

Purchase this Article:   20 Purchase PDF Order Reprints for 15

Share this article :