Economy in Brief

Tirana Times
By Tirana Times May 3, 2019 13:10

Economy in Brief

Air Albania issues expensive prices

Our new airline Air Albania in collaboration with Turkish Airlines was supposed to be a cheap alternative for flights in preferred destinations. However, the prices have proved very expensive, with only five spots in the plane under 200 euros per one way. Then the prices go as up as 440 euros per one way. And these flights are generally directed to Istanbul only, as other destinations are yet unavailable. What the business and economy magazine Monitor has found is that prices where at least 25 percent cheaper if bought from the Turkish Airlines website.


Government owes 1.5 billion euros to third parties

As of 2017 data the government owes 1.54 billion euros in liabilities which include unpaid invoices due time to the business sector, individuals, etc. This does not include public debt accounts. Receivable accounts receivable were about 1.3 billion euros at the end of 2017, which include the claims of public authorities against economic agents, such as commissions, taxes and social security. The total financial liabilities of the general government sector are estimated at 9.738 billion euros, with the bulk of the public debt. The main financing instrument used by the general government continues to be debt securities, which account for about 48 percent of total liabilities. 36 percent of total liabilities belong to long-term loans which have also played an important role as a financing instrument.


World Bank predicts lowering oil prices for 2019-2020

The World Bank has predicted that during 2019 the oil prices will be reduced by 3.4 percentage points, or 66 dollars per barrel, and during 2020, the price will be reduced by 1.8 percentage points at 65 dollars per barrel. This comes in accordance to slow progress of the global economy, OPEC and partners short production, and the lower demands due to the environmental policies. The environmental policies aim to reduce the usage of oil in the transportation sector.


Companies on loans and usuries

The Bank of Albania conducted a survey with 1300 enterprises to find whether businesses are turning to informal financing sources, as bank loans have dropped by six percent with only 85.4 percent of the surveyed businesses. The survey found that 42.2 percent responded that they had a loan to pay off, an indicator which dropped by 0.3 percentage points. 16.3 percent of small enterprises, 7 percent of medium enterprises, and 13.4 percent of the large ones responded to have gotten a loan through informal or combined sources during the second half of 2018. Interesting from the results was that 54.5 percent of the small enterprises, 44 percent of the medium ones and 41.1 percent of the large ones responded that will seek future loans from alternative sources.


Albanians are unsatisfied with current jobs

From the findings of an European Quality of Life Survey for 2016 on EU member and candidate states, it was estimated that the average current job satisfaction in Europe was 7.4 out of 8. Albania was one of the lowest at a 6.8 satisfaction level, the same as Serbia, followed by Montenegro and Turkey at 6.6, and then Greece with FYROM at 6.4. Highest satisfaction was noticed in persons with lower wages. In a previous survey from 2015 on working conditions satisfaction, data claimed that 11 percent of Albanians were not satisfied at all with their working conditions, 33 percent were not very satisfied, 45 percent were satisfied, and 11 percent were very satisfied. However, it should be kept in mind that these data are about three years, and the indexes are subject to change.


Albpetrol to auction 75 thousand tons of crude oil

The state company of oil extraction and production Albpetrol will be auctioning 75,101 tones of crude oil on May 3. The minimal unit price will be 75.72 percent of the Brent price-2.97 USD/bbl (barrel) +K. 75.27 percent is the coefficient which represents the average oil characteristics (specific weight, oil acidity, sulfur percentage). Brent is the Brent of Platts USD/bbl price, published in the Public Procurement Bulletin, which as of today is 71.84 USD/bbl. 2.97 USD/bbl is the total average cost (transport, storage, stock, product analysis, insurance). K is the USD/bbl value offered by the bidder over the minimum sale price calculated by the formula (K≥0). Albpetrol sold 56 thousand tons of crude oil of 23 million euros worth last year.


Italians prefer Albania as a tourist destination

Italian media have written how Albania is taking the control as the major tourist destination. A risk of over-reservation has been warned by tourist guides. The reasons Albania has been attractive is due to lower costs, new innovations and improvements made to the sector, Italian language is widely spoken by Albanians, and it is just across the bay. It is estimated that Italian tourists are also spending more during the summer season, staying 6.8 days on average and spending 81 euros a day per person, compared to the 4.3 days other foreign tourists stay here and 52 euros a day they spend.


Philip Morris launches new smokeless tool

On April 25 the Philip Morris launched in Albania a new innovative tool named IQOS, which is a technological smokeless alternative to traditional cigarettes. The tool warms the tobacco enough to release the nicotine and taste, but does not burn it, so as not to release tar, ash, or unpleasant smells. The company aims to transform the tobacco industry into a smokeless world. For that purpose it has invested over 6 billion euros for the latest technology which was developed by 400 scientists. So far the product has been introduced in over 40 countries, and 7.3 million smokers have turned to it.


Social security agreement signed between Albania and Canada

60 thousand Albanian citizens that live and work in Canada will benefit from the agreement on “Social Protection between Albania and Canada and the Administrative Regulation,” signed between the Albanian Ministry of Finance and Economy and the Canadian Department of Employment and Social Development. This agreement aims to avoid duplication of coverage for the same period and the unification of insurance periods realized in the two countries. Under the agreement, no citizen will miss a day’s worth of contributions, regardless of where he worked, since the unification of the periods will make it possible to meet the legal conditions for the retirement benefit in both countries, and also pension exporting.


Tirana Times
By Tirana Times May 3, 2019 13:10