Covid-19 / Herjola Spahiu: Here is the strategy of NOA financial institution in support of the Albanian economy and in helping clients.

Mrs. Herjola Spahiu, CEO of the financial institution NOA talks about the measures taken by this institution, to be as close as possible to businesses in coping with the situation of the COVID-19 pandemics. Mrs. Spahiu also explains in details what the strategy of the NOA financial institution will be in helping clients.

What effects did the measures taken against the COVID-19 pandemics in Albania bring to businesses and what was the assistance provided to them by the institution you lead?

The measures taken since the beginning of the COVID-19 pandemics, on the one hand the suspension of a number of economic activities in the service, transport and tourism sectors, and on the other hand the restriction of the movement of the citizens, have caused a significant impact on financial impossibility of these businesses or their employees, to make regular loan payments throughout the financial system. This also includes financial institutions such as NOA.

Given this situation, NOA has supported over 3,200 requests for rescheduling from small entrepreneurs, farmers or families, whose incomes have been impacted by the economic activity restrictions in recent weeks. However, in parallel, NOA has also been committed to providing support in the form of refinancing current needs to cover the current expenses of these clients, whether these are payments of taxes, supplies or salaries of employees for the next 3-6 months. This dual support strategy, through rescheduling or financing, also reflects the fact that 28% of the institution's portfolio is concentrated in the sectors most affected by the above measures.

The figure of 3,200 borrowers sums up a financing portfolio of about 14.5m euros. The above financial value, proves the maximum commitment of NOA institution in support of the Albanian economy, and the priority set to each client profile, always offering a solution tailored to each situation.

What will be the upcoming strategy of the NOA financial institution in helping businesses in need?

NOA is predicting a request for the rescheduling of the loan instalments during May at the level of 500 to 800 other clients representing businesses that have not yet started activity, or individuals employed in such businesses.

The rapid processing of such a significant number of clients has been made possible through a very dynamic approach from the first moment of issuing the respective instruction by the Bank of Albania on rescheduling loan instalments for the period March - May 2020. Thus, despite Limitation of operating hours, especially during the first weeks of the pandemics, thanks to regular investments in NOA infrastructure, NOA has enabled the work from home of about 50 employees who have continuously supported the operational actions of our clients, especially the rescheduling process. 

We remind you that since March 12, the operations of the institution have not been interrupted at any time, serving every need of the clients, and for this a special thanks goes to the staff, especially those in the branch, who have continued to be in constant contact with the customers.

Beyond the rigorous implementation of the guidelines of the Bank of Albania and easing the financial burden for all individuals and businesses affected by the Covid-19 pandemic, as a leading financial institution in the microfinance sector, NOA has also continued to provide new financing, with quick and easy procedures to support the return to normalcy of the Albanian economy in the shortest time possible.

It is worth noting that 90% of NOA’s financing portfolio is made up of businesses or small farmers who have been also the most affected by the economic activity constraints of the recent weeks. Therefore, in parallel with the above rescheduling, the institution has not stopped at any time the reviewing of dozens of requests for new financing from businesses or individuals who need additional funding in this difficult period for the entire economy.

Consequently, during the months of March and April 2020, NOA continued lending by responding positively to more than 1,000 loan applications, of which about 50% were in the agriculture / livestock sector and 35% in sectors such as retail, minimarkets or bakeries, and the difference from individuals employed in the public or private sector. 

Finally, it is worth mentioning the investment during this period in the most rigorous possible implementation of the safety and distancing rules required in order to provide service to our customers, although the first weeks were very difficult due to the restriction of movements.

What are the difficulties encountered during this period in your institution?

The difficulties stem from the fact that the lending processes of the institution, as well as the requests for rescheduling, are normally carried out in the field, near the premises of our clients. This is for the sole purpose of facilitating and maximizing the process, especially for rural customers. Carrying out these processes in the field, is achieved successfully thanks to the continuous investments that the institution has made in new technologies and security of information transmission, but also thanks to the professionalism of a highly dedicated staff and expertise gained in these 21 years in lending.

Being more restricted in field movements during the first weeks of the pandemics, NOA was able to successfully develop alternative ways of conducting operations, either by improving online applications directly from customers via the company website, or social media, as well as developing partnerships with important partners like EasyPay. This is a completely new institutional cooperation and at the same time very successful in the advantages it brings to the company's clients. In this way, it is facilitated not only the process of remote lending, but also the payment of loan instalments through the EasyPay distribution network. This step is a very important relief for our clients, especially in rural areas, especially in this situation of social distancing and limited interurban movements.

Finally, why should we trust NOA?

The main figure that comes to mind when quoting NOA is the injection into the national economy of about 28 million euros per year, which go to investments for small business, the creation of new jobs, increasing the productive capacities of the Albanian enterprise, financing the rural economy, and raising living standards for thousands of Albanian clients. These funds represent private financing lines provided in the international financial markets, which would not otherwise be injected into the Albanian economy without the mediation of financial institutions such as NOA.

With an activity of 21 years, NOA financial institution is licensed and monitored in its activity by the Bank of Albania. Also certified by the European Union as an institution that implements the best European microfinance practices, NOA is one of the private institutions with 100% foreign capital that follows the highest standards in relations with Albanian borrowing clients. As such, NOA is committed to remaining a leading institution in financing the country's economic recovery by continuing to respond with advantageous financial products to every need of the small entrepreneur and the Albanian farmer.