September marked by lowest level of non-performing loans in the decade

September marked by lowest level of non-performing loans in the decade

TIRANA, Nov. 8 – Non-performing loans hit a record low of 10.6 percent during September, according to the Bank of Albania. This is the lowest it has been since a decade ago, as September 2014 was met with a rapid

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IMF and SSA report higher debt amount than Ministry of Finance

IMF and SSA report higher debt amount than Ministry of Finance

TIRANA, Nov. 3 – In its recent World Economic Outlook report, the International Monetary Fund did not acknowledge the official government debt data reported by the Ministry of Finance and Economy in Albania. The IMF reported that the 2018 public

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New digital system to be established for water supply assets’ management

New digital system to be established for water supply assets’ management

TIRANA, Nov. 1 – On Friday, the National Water and Sewerage Agency announced that a new digital system is in the works, with aims to improve the management of assets and to enable more transparency on the investments being made

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Banking system performed well during September 2019 as deposits and loans increased

Banking system performed well during September 2019 as deposits and loans increased

TIRANA, Oct. 30 – The banking system performed well in September as deposits increased and loans expanded significantly. According to the data provided by the Bank of Albania, the loan stock for businesses and individuals amounted to 4.5 million euros

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Albanian Energy Regulator continues to reject pricing request by Elbasan incinerator

Albanian Energy Regulator continues to reject pricing request by Elbasan incinerator

TIRANA, Oct. 29 – The request made by the incinerator in Elbasan, currently operated by the ‘Albtek’ company, to set the price of its produced energy, was yet again refused by The Albanian Energy Regulator Authority (ERE). Moreover, ERE claimed

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New draft law makes Albania part of the financial offshore reporting system

New draft law makes Albania part of the financial offshore reporting system

TIRANA, Oct. 28 – A new draft law that will include Albania in the system of information exchange on offshore accounts, involving balance sheets of accounts and assets, is to be discussed in the Parliament during the following weeks. The

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Gov’t indebted to local branches by 116 million euros

Gov’t indebted to local branches by 116 million euros

TIRANA, Oct. 27 – In its audit report, the Albanian Supreme State Audit Institution (KLSH) revealed that the central government owes an amount of 116 million euros to the local government. Based on legislation, if not fully spent within a

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Electricity distributor’s budget at risk due to lack of rainfall

Electricity distributor’s budget at risk due to lack of rainfall

TIRANA, Oct. 22 – The lack of rainfall led the Electricity Power Distribution System Operator (OSHEE) to increase  the requests for funding through the state budget. The Ministry of Finance and Economy predicted that financial support to the OSHEE may

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Concessions are spiraling out of the state’s control, Supreme State Audit reports

Concessions are spiraling out of the state’s control, Supreme State Audit reports

TIRANA, Oct. 22 – In its 2018 Factual Budget report, the Albanian Supreme State Audit Institution (KLSH) stated that “so far, the monitoring process of concessionary contracts has been out of the state’s control and has faced many complications, questioning

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Domestic VAT income declined by 48 percent due to TAP finalization

Domestic VAT income declined by 48 percent due to TAP finalization

Tirana, Oct. 22 – The finalization process of the Trans Adriatic Pipeline (TAP) project sparked issues for the economy in the country. Official data by the Ministry of Finance and Economy, show that domestic VAT income, a direct indicator of

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                    [post_content] => TIRANA, Nov. 8 - Non-performing loans hit a record low of 10.6 percent during September, according to the Bank of Albania. This is the lowest it has been since a decade ago, as September 2014 was met with a rapid increase amounting to 25 percent in non-performing loans. Since then, the NPL level decreased, reaching 11 percent at the end of 2018 after the Bank of Albania undertook a strategy towards the restructuring of loans. A slight increase was noticed in the beginning of 2019, but this was soon followed by a decline in non-performing loans which had not been paid back for a period of at least three years.

Earlier this year, the BoA approved ‘Tirana Access’, a saving plan for businesses which failed to pay off their loans amounting to over 8 million euros to banks. Therefore, another factor which led to the improvement of NPLs involves the increase of loans to the private sector. “The level of private sector loans increased by an average of 7.5 percent during the third quarter. This increasing rate came as a result of the rise in demand as well as the improvement of bank loan supply. Not only does the latter reflect the improvement of the constant loan environment and the banking sector’s performance - as shown through the decline to 10.6 percent of non-performing loans - but it also indicates an increase of competition in the banking system in the conclusion of its consolidation process. Seeing its composition, the increase in loans was broad-based in terms of currency structure, beneficiaries as well as its destination. This is another encouraging signal for the expansion of loans in the future,” the governor of the Bank of Albania, Gent Sejko, said. Earlier this year, the BoA approved ‘Tirana Access’, a saving plan for businesses which failed to pay off their loans amounting to over 8 million euros to banks. 

 
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                    [post_date] => 2019-11-10 10:16:13
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                    [post_content] => TIRANA, Nov. 3 - In its recent World Economic Outlook report, the International Monetary Fund did not acknowledge the official government debt data reported by the Ministry of Finance and Economy in Albania. The IMF reported that the 2018 public debt in Albania amounted to 69.9 percent; this number was 2.8 percent points higher than the 67.1 percentage reported by the government for 2018. The statistics of the IMF correspond with the data in the 2018 budget assessment report by the State Supreme Audit (KLSH), which found that the real government debt was 69.7 percent. 

Both the IMF and KLSH included the government arrears in the public debt accounts, which are currently excluded from the MFE’s reports. This is the third year in a row in which the IMF and the government give different reports on public debt data; during 2017 the Albanian government reported that the public debt composed 70 percent of GDP, while this number was actually 71.8 percent according to the IMF and 72 percent according to the KLSH. The Albanian government’s credibility to report accurate data on the public debt was lost in 2013, when the political rotation revealed public arrears that had produced an undisclosed debt amounting to 6 percent of the GDP. Despite strict and preventative measures to avoid similar outcomes, the situation did not change six years later, as government liabilities reached 519 million euros (including court rulings) according to the KLSH. As a result, the inability to pay off overdue financial obligations undermines the debt stock used to fund undeclared expenses.

According to the KLSH’s report on undeclared government expenses, the amount of the duty on reimbursable VAT and arrears as ascertained by the Compulsory Health Insurance Fund, is around 340 thousand euros.

Considering this amount, the public debt stock would have been around 9.3 million euros instead of the reported 8.9 million euros, which would then indicate the 69.7 percentage level of the debt based on the debt-to-GDP ratio. If the effect of the exchange rate depreciation on the external public debt is excluded, the real debt amounts to 71.6 percent of the GDP, or 4.4 percentage points more than the amount reported by the Ministry of Finance and Economy, according to the KLSH.

 
                    [post_title] => IMF and SSA report higher debt amount than Ministry of Finance
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                    [post_date] => 2019-11-08 11:30:04
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                    [post_content] => TIRANA, Nov. 1 - On Friday, the National Water and Sewerage Agency announced that a new digital system is in the works, with aims to improve the management of assets and to enable more transparency on the investments being made towards water suppliers, including subsidies as well. Water suppliers in the country are responsible for the written periodical reports which are sent to the National Water and Sewerage Agency, but currently there is no central system which connects them together. Moreover, there is a need for displaying the total balance of assets that this sector accounts for, as well as the investments being made in the country.

The digital system is expected to cost the agency around 1.2 million euros, even though it is still in the tendering process and the real cost will be revealed only after its finalization. “This digitalization process will have a direct impact on the local units and the Water Supply and Sewerage Association regarding the functioning and maintenance of the water supply and sewerage systems. Additionally, it will have a huge impact on the improvement of capital and replacement of the state-owned water supply and sewerage system assets, due to them being very old and possibly neglected for a long time. This situation becomes more complicated if the Association has not officially signed a program for the management of its assets on the system of the objects in its ownership.  The identification, registration and assessment of the Water Supply and Sewerage Association’s state of assets in local units are actions which must be taken immediately and require full attention of the Association,” reports stated.

The  digital system will have four main objectives, starting with the development of a national platform for the water supply and sewerage system assets and use of this information towards the drafting of national policies and programs. The second objective aims to coordinate the efforts between institutions at the central and local level to improve the monitoring of investments in the sector and the planning as a whole, while the third objective focuses on the control and monitoring of projects which are funded by the state budget or donors in the area of water supply and sewerage. Finally, the fourth objective involves the programming of investments for the sector, based on the priorities stated in the Masterplan as well as the projects submitted to the National Water and Sewerage Agency.
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                    [post_date] => 2019-10-30 12:52:49
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                    [post_content] => TIRANA, Oct. 30 - The banking system performed well in September as deposits increased and loans expanded significantly. According to the data provided by the Bank of Albania, the loan stock for businesses and individuals amounted to 4.5 million euros at the end of September, increasing by 0.9 percent in comparison to the previous month. The expansion of loans in September was due to corporate loans, mainly in lekë (+1.7 percent on a monthly basis), though the foreign currency had a positive trend as well, precisely at a +0.5 percent on a monthly basis.

Individual loans increased as well, but mainly in lek (+1 percent on a monthly basis), as banks usually recommend taking out loans in the currency equivalent to that of their income. On an annual basis, from September 2018 to September 2019, loans increased by 5.7 percent. This seemed to be a recovery from the negative performance of the last two years. Both businesses and individuals influenced the increase of loans. Positive factors during this period were the stability of the euro as well as the downtrend of hiding non-performing loans in the banks’ balance sheets; data on loan currency is reported in lekë and the underpricing of the euro last year reduced the currency stock.

The trend of deposits proved positive during September as well, but at a slow rate compared to the previous month due to the seasonal remittances. According to the BoA’s statistical data, the stock of deposits by the end of September amounted to 8 billion euros, increasing slightly by 12 million euros in comparison to the month of August. This trend was fully influenced by savings in the foreign currency.

On an annual basis (September 2018 to September 2019), deposits in the banking system increased by 2.6 percent, again due to savings in the foreign currency (mainly euro). Individuals on the other hand showed reluctance in making time deposits in lekë, due to the unfavorable interest norms. During September 2019, the stock of individual time deposits declined by 7.1 percent compared to September 2018, comprising only 22 percent of the total deposits compared to 40 percent in January 2013.

The weight of deposits in foreign currency was at 55 percent in September 2019 compared to 48.7 percent in January 2013, indicating a dominance of foreign currency deposits, mainly in euro.

 

 
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                    [post_date] => 2019-10-29 12:43:32
                    [post_date_gmt] => 2019-10-29 11:43:32
                    [post_content] => TIRANA, Oct. 29 - The request made by the incinerator in Elbasan, currently operated by the ‘Albtek’ company, to set the price of its produced energy, was yet again refused by The Albanian Energy Regulator Authority (ERE). Moreover, ERE claimed that the installed power of the plant is 2.85MW and therefore it surpasses the permitted 2 MW limit. In accordance to this decision, the Ministry of Infrastructure and Energy has left the incinerator unable to sell the energy it produces. Its operator, ‘Albtek’ company, has applied for the pricing process of the incinerator’s energy numerous times, but so far ERE has remained reluctant in granting the request.

This deadlock was further explained by the board member of ERE, Erjola Sadushi, who said that ERE can approve prices regarding subjects which have final clients to whom they sell energy to, but in this case we are dealing with a single subject and therefore its energy needs to be sold to OSHEE. According to Sadushi, the subject in question is involved in only one concessionary contract. “For these types of power plants, ERE deals with the entire category instead of dealing solely with a single subject. In this case we cannot set a price even if the installed power was within the required 2MW limit,” Sadushi said.

Another board member, Rajmonda Ismailaj, emphasized that this case is so specific because they are dealing with a Public Private Partnership. “We cannot set a specific price only for this incinerator. In the case of ‘Albtek’, ERE sets average production prices for the group in reference to the methodology that considers the investment and operating costs and smaller parties over the amount of produced energy and the deadline. This company is a PPP, meaning that the costs are only operational as the government is paying for the investments and therefore that makes our formula invalid. We are not in the condition to set a price which is beyond the methodology approved by the Council of Ministers Decision,” Ismailaj said. With the company being part of a concessionary contract, the energy’s selling price would be too high. She added that the subject in question fills only 10 percent of the approved formula’s indicators.

The incinerator in Elbasan which is operated by Albtek Energy through a concessionary contract, is currently fully functional at a cost of 43 million euros. The processing capacity based on the contract is around 120-140 tonnes/day, producing an amount of energy in the process.

 
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                    [post_author] => 29
                    [post_date] => 2019-10-28 12:06:52
                    [post_date_gmt] => 2019-10-28 11:06:52
                    [post_content] => TIRANA, Oct. 28 - A new draft law that will include Albania in the system of information exchange on offshore accounts, involving balance sheets of accounts and assets, is to be discussed in the Parliament during the following weeks. The Draft Law ‘On the automatic exchange of information on financial accounts’ seeks to create efficient means to implement a system of information exchange in accordance to the Common Reporting Standard and the multilateral agreement between the competent authorities for the automatic information exchange of financial accounts, approved by the Council of Ministers Decision no.178, date 9.3.2016.

According to the newly established global standard, a wide range of information on offshore accounts will be exchanged, including the balance sheets of accounts and assets. This will facilitate the prevention of tax evasion and tax fraud, as they not only decrease public revenue, but add to the burden on regular taxpayers. This is not the first step that Albania has taken to achieve similar standards; the country has been a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes since November of 2012. The Global Forum is the largest international organisation in the field of information exchange for tax purposes against fiscal evasion, supported by G20. Its most important project is the Peer Review, which is drafted for each of the member states and involves the careful assessment of the legal framework and regulatory bodies as well as the practice of the tax information exchange system.

After the legal framework and regulatory bodies assessment, Albania was evaluated by the Forum regarding the second phase which involves the implementation of the standards in practice. The Forum recommended the drafting of primary and secondary legal acts towards the implementation of the automatic exchange of information between the countries which have signed the multilateral agreement; the Common Reporting Standard aims to engage member countries in the increase of transparency of the tax system.

Moreover, Albania also signed the multilateral agreement between the competent authorities, pursuant to Article 6 ‘The automatic exchange of information’ of the Convention on Mutual Administrative Assistance in Tax Matters, which Albania ratified through Law 146/2013, date 6.5.2013. Through this common agreement on a global standard, the signing countries are able to go through with the implementation of an information exchange system which fightsand prevents tax evasion on a larger scale.

 
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                    [post_author] => 29
                    [post_date] => 2019-10-27 17:12:46
                    [post_date_gmt] => 2019-10-27 16:12:46
                    [post_content] => TIRANA, Oct. 27 - In its audit report, the Albanian Supreme State Audit Institution (KLSH) revealed that the central government owes an amount of 116 million euros to the local government. Based on legislation, if not fully spent within a year, the unconditional funds that the local authorities receive annually from the central government can be used in the following year. However, in this case the central government was found to have used the remaining funds for expenses unrelated to the local government and therefore has become indebted to the latter. 

The report also discovered that the amount of unused funds by the local governance units was double the amount of what the central authorities owed to third parties.According to data provided by the Ministry of Finance, the central government’s financial obligations towards third parties amounted to 55 million euros by the end of 2018. Yet, the KLSH reported that these numbers are much lower when compared to the debt towards the local government authorities which amounted to 116 million euros. 

The distribution of these funds to other authorities which do not share the same competences with the local government units, was made possible through the violation of the Budget Law and the Law On Local Self-Government. Not only did this allocation cause more government arrears, precisely by 55 thousand euros according to the Local Finances Directorate, but it also breached the principles of the local government autonomy. According to the KLSH, this led to a halt in expenditures and the accumulation of debts.

The Law On Local Self-Government stipulates that the obligation to allocate funds to the local government units is at 1 percent of the GDP. On the other hand, the rights of local government units to receive unconditional annual funds by the central government and keep any unused funds, both those received by the central units and those it has gathered in its own, through unconditional transfers for the following year, are defined by the Organic Budget Law and Law On Local Self-Government. The initial plan showed that the detailed plan for the local budget was indeed at 1 percent of the GDP, therefore in accordance with the budget law. However, the unconditional transfers  of the unused funds were not at all in compliance with the initial budget law, regardless of the legal framework demanding that these funds are allocated to the local government units.

 
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                    [post_author] => 29
                    [post_date] => 2019-10-22 13:44:44
                    [post_date_gmt] => 2019-10-22 11:44:44
                    [post_content] => TIRANA, Oct. 22 - The lack of rainfall led the Electricity Power Distribution System Operator (OSHEE) to increase  the requests for funding through the state budget. The Ministry of Finance and Economy predicted that financial support to the OSHEE may amount to 40 million euros by the end of 2019, considering the disbursements and unfavorable hydric situation in 2018 and 2019. The MFE asked the Ministry of Infrastructure and the OSHEE to take a number of measures, starting with the reassessment of the financial position, by taking into consideration - through steady and realistic predictions - the expected developments in domestic energy production. They also need to focus on the reviewing of the investment plan for 2019, by referring to the Plan for the Financial Consolidation of the Public Power Energy, in agreement with the World Bank, where the OSHEE sh.a must respect a level of investments at about 40 million euros per year for the next three years.  Necessary measures should also be taken for the optimal management of liquidations, the reduction of operational costs of OSHEE’s expenditures, which increased significantly in 2019 compared to the previous year. On a three-month basis, the MFE systematically collected, processed and analyzed the necessary information concerning the financial performance indicators of the three companies in the energy sector.

These measures are taken with the purpose of identifying, assessing, monitoring and reporting the fiscal risks which emerge from public enterprises with an overall state capital as well as from the energy sector in particular, considering its strategic importance and issues. During the first quarter of 2019, compared to the same period in 2018, it was observed that income declined by a considerable amount of 51 million euros or 24 percent, while expenditures declined by 29 million euros or 14 percent. This led to the following results:
  1. The financial result (profit/loss) during this quarter was negative, marking an amount of 14 million euros in loss.
  2. The total amount of Assets and Liabilities increased by 6 percent and 2 percent, consequently boosting capital by 19 percent.
  3. The profit margin, return on assets and capital demonstrate a declining trend and therefore an overall poor performance of the sector.
[post_title] => Electricity distributor’s budget at risk due to lack of rainfall [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => electricity-distributors-budget-at-risk-due-to-lack-of-rainfall [to_ping] => [pinged] => [post_modified] => 2019-10-25 13:46:14 [post_modified_gmt] => 2019-10-25 11:46:14 [post_content_filtered] => [post_parent] => 0 [guid] => http://www.tiranatimes.com/?p=143358 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [8] => WP_Post Object ( [ID] => 143355 [post_author] => 29 [post_date] => 2019-10-22 11:39:58 [post_date_gmt] => 2019-10-22 09:39:58 [post_content] => TIRANA, Oct. 22 - In its 2018 Factual Budget report, the Albanian Supreme State Audit Institution (KLSH) stated that “so far, the monitoring process of concessionary contracts has been out of the state’s control and has faced many complications, questioning the overall quality of the contract preparation and measurable indicators on service monitoring for which these contracts were signed.”  However the KLSH also pointed out that during 2018, the payment deadlines for concessions were generally respected in proportion to tax revenue.   Article 4/2 on ‘Minimization of risk for extra-budgetary actions’ of law no. 9936, on 26.06.2008 ‘For the management of the budget system in the Republic of Albania’, states that “the overall amount of annual net payments made by the general governance units out of concessionary contracts or Public-Private Partnerships (PPP) must not surpass the 5 percent limit of the previous year’s factual tax revenue. In case this limit is exceeded, the Council of Ministers takes corrective measures through the revenue budget in order to set the payments back within the permitted limit in the following two years.” The KLSH  considered it mandatory that this limit is respected throughout the duration of the concessionary/PPPs contracts in the following years, on the basis of accurately projected cash flow, in order to fairly assess the implementation of the limit for new concessionary/PPPs contracts.  In regard to the outflows of respective projects for each year, selected for auditing in the Concessions Directorate in the Ministry of Finance and Economy, differences were found towards the reflected values in respect of the 5 percent limit. These issues involved the lack of outflow quantification of the State Budget for the management of risks undertaken by the public sector and simultaneously of all VAT or expropriation costs. The KLSH pointed out the need to focus on the income growth rate in respect of the 5 percent limit during the concessionary period. It also expressed concern for the impact that PPPs will have on the level of public debt, stressing that the monitoring procedure of the debt indicator should be implemented, considering the budgetary implications associated with concessions/PPPs. “In this way, each concessionary contract is a contract that involves inflows and outflows for several years, for which funding of the project is needed. As regards to current data linked to 15 concessionary contracts, it appears that some of them, in reference to the classification standards in or out of the government balance sheet, have an impact on the debt indicators. Therefore, the financial costs of these projects should be taken into consideration during the planning and implementation of debt indicators, despite the fact that the Ministry of Finance and Economy does not give out reports in accordance with the right international standards which require these contracts to be included in the debt stock report.” the KLSH added. A future of concessions This report comes at a time in which the government has undertaken many Public Private Partnerships (PPP) projects. For the next 15 years (2019-2032), the government will be engaging in several projects for which it has to pay a total of 2 billion euros collected through taxpayers' money. Payments will double in the four upcoming years, reaching their peak in 2022, but eventually diminishing later on. Regarding this year’s concessions, the expected payment of 102 million euros is predicted to reach 188 million euros in 2024 and later fall back at 95 million euros in 2032. After this year, the only concession which will continue to be paid for through the budget is that of the incinerator in Tirana, at 166 million euros per year until 2041. The total number of approved concessionary contracts is 14, with four  of the following road projects taking up 60 percent of them: Thumanë – Vorë, Orikum – Dukat, Milot – Balldren and Arbër Road. Besides roads, the government’s main focus has also been on seaports; concessions were recently granted for the Port of Limion in Sarandë and Port of yachts in the Cape of Rodon. The former was granted to the joint venture of ‘Kastrati’ and ‘Edil Al’ while the latter was given out to another joint venture between ‘Praslin Investment’ sh.p.k. and ‘R&T’. However, this could mean more trouble for the Albanian government as this is not the first time that concessions involving natural resources were granted to big corporates. During the last few years, HPP concessions such as those in Valbona and Vjosa rivers, were deemed as controversial, sparking debate about the ecological issues that could arise from them. The government has been subject to criticism by the EU Court of Auditors and European Network on Debt and Development, for the lack of environmental impact assessments as well as the European Commission which has recommended focusing on addressing ecological and social considerations.   [post_title] => Concessions are spiraling out of the state’s control, Supreme State Audit reports [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => concessions-are-spiraling-out-of-the-states-control-supreme-state-audit-reports [to_ping] => [pinged] => [post_modified] => 2019-10-25 13:44:25 [post_modified_gmt] => 2019-10-25 11:44:25 [post_content_filtered] => [post_parent] => 0 [guid] => http://www.tiranatimes.com/?p=143355 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [9] => WP_Post Object ( [ID] => 143361 [post_author] => 29 [post_date] => 2019-10-22 10:46:54 [post_date_gmt] => 2019-10-22 08:46:54 [post_content] => Tirana, Oct. 22 - The finalization process of the Trans Adriatic Pipeline (TAP) project sparked issues for the economy in the country. Official data by the Ministry of Finance and Economy, show that domestic VAT income, a direct indicator of consumption in the economy, declined by 48 percent, marking the biggest downturn in the last decade. The MFE explained that the main cause of the massive decline is the finalization of the TAP project, due to the dominantly foreign subcontracting companies ceasing their activity. “The progress of VAT during the last nine months has not been at the optimal level, but this is not due to informality. The indicators of the TAP project revealed that it did not have as much impact this year as it did in the previous years since its onset. While the energy sector is also to blame as it has not performed well this year due to the lack of rainfall, the progress of TAP has also been closely linked to the subcontractors, mainly in the field of construction. Therefore, the impact of the pipeline project is observable in a bigger picture.” the General Director of Taxation, Delina Ibrahimaj, confirmed According to official data, only 1.85 billion euros were collected in domestic VAT, compared to 3.6 billion euros during the same period of last year. During the January-September period, income fell by 22 percent, marking the worst performance in years. This trend is an indicator of how weak the economy in the country is, based on its strong dependency towards a single project. TAP is the biggest investment ever made in the Albanian economy, at an amount of 1.5 billion euros, however with its conclusion the effect also ends; Albania does not have the right infrastructure to put the gas at use, at least in the mid-term. Dividend and local taxes add to the budget The total income during the period of January- September, reached an amount of 2.8 billion euros, increasing by 4.2 percent on an annual basis. In comparison to the plan, the budget is short of 65 million euros. The total amount of VAT income, the main capital of the budget bringing in about 30 percent of revenue, fell by 4.4 percent as a result of the poor performance of the domestic VAT. National tax revenue also experienced a strong decline, precisely by 8.6, due to the weak progress of the mineral industry. Income from the tax profit increased by 11.5 percent and 4.7 percent from the excise duty, while income from social security were positive, with a surplus of 5.5 percent. The highest growth rate was observed in the personal income tax at 33 percent, as a result of the decrease in dividend tax from 5 percent to 8 percent, which led businesses to quickly distribute their profits up until September. According to official data provided by the tax authorities, income from the dividend tax amounted to 90 million euros during the nine-month period, tripling since last year. Local taxes also increased by 31 percent, mainly through the collection of infrastructure impact taxes due to the construction permits given out in Tirana. However, excluding the effects of dividend and local taxes, the amount of increased income would be almost zero. [post_title] => Domestic VAT income declined by 48 percent due to TAP finalization [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => domestic-vat-income-declined-by-48-percent-due-to-tap-finalization [to_ping] => [pinged] => [post_modified] => 2019-10-25 13:49:57 [post_modified_gmt] => 2019-10-25 11:49:57 [post_content_filtered] => [post_parent] => 0 [guid] => http://www.tiranatimes.com/?p=143361 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) ) [post] => WP_Post Object ( [ID] => 143492 [post_author] => 29 [post_date] => 2019-11-13 12:22:30 [post_date_gmt] => 2019-11-13 11:22:30 [post_content] => TIRANA, Nov. 8 - Non-performing loans hit a record low of 10.6 percent during September, according to the Bank of Albania. This is the lowest it has been since a decade ago, as September 2014 was met with a rapid increase amounting to 25 percent in non-performing loans. Since then, the NPL level decreased, reaching 11 percent at the end of 2018 after the Bank of Albania undertook a strategy towards the restructuring of loans. A slight increase was noticed in the beginning of 2019, but this was soon followed by a decline in non-performing loans which had not been paid back for a period of at least three years. Earlier this year, the BoA approved ‘Tirana Access’, a saving plan for businesses which failed to pay off their loans amounting to over 8 million euros to banks. Therefore, another factor which led to the improvement of NPLs involves the increase of loans to the private sector. “The level of private sector loans increased by an average of 7.5 percent during the third quarter. This increasing rate came as a result of the rise in demand as well as the improvement of bank loan supply. Not only does the latter reflect the improvement of the constant loan environment and the banking sector’s performance - as shown through the decline to 10.6 percent of non-performing loans - but it also indicates an increase of competition in the banking system in the conclusion of its consolidation process. Seeing its composition, the increase in loans was broad-based in terms of currency structure, beneficiaries as well as its destination. This is another encouraging signal for the expansion of loans in the future,” the governor of the Bank of Albania, Gent Sejko, said. Earlier this year, the BoA approved ‘Tirana Access’, a saving plan for businesses which failed to pay off their loans amounting to over 8 million euros to banks.    [post_title] => September marked by lowest level of non-performing loans in the decade [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => september-marked-by-lowest-level-of-non-performing-loans-in-the-decade [to_ping] => [pinged] => [post_modified] => 2019-11-13 12:22:30 [post_modified_gmt] => 2019-11-13 11:22:30 [post_content_filtered] => [post_parent] => 0 [guid] => http://www.tiranatimes.com/?p=143492 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [queried_object] => stdClass Object ( [term_id] => 5 [name] => Economy [slug] => economy [term_group] => 0 [term_taxonomy_id] => 5 [taxonomy] => category [description] => [parent] => 0 [count] => 7900 [filter] => raw [cat_ID] => 5 [category_count] => 7900 [category_description] => [cat_name] => Economy [category_nicename] => economy [category_parent] => 0 ) [queried_object_id] => 5 [post__not_in] => Array ( ) )

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