THE EFFECTIVENESS OF MICROCREDIT APPLICATION ON ALBANIAN POVERTY

Abstract

Micro-credits in Albania are a segment of the economy which is emergent recently. The main activities in this sector are: alimentary shops, bakeries, wood and metal processing units, constructions, dairies, and boutiques etc. located mainly in developed areas. As a matter of fact the rural area is still living in problematic conditions compared with the other parts of Albania. In Albania many banks and non-financial institutions offer savings and loan opportunities but for different reasons, which will be also analyzed, individuals in need cannot receive them. The government on the other hand provided many facilities but none of the policies was able to minimize at least their conditions. This project aims to investigate the effectiveness of Albanian banks to the micro sectors, by analyzing the statistics which might bring development for these sectors. The situation of the government strategies and the main risks micro credits might cause. The outlines of the research will be based on the evaluation of the economic indicators with the micro credits movements. At the end the research study will present some suggestions regarding the improving of the financing opportunities of micro sector, contributing thus to the poverty minimization.