Disfavorable business climate for foreign investors

Tirana Times
By Tirana Times June 11, 2019 15:05

Disfavorable business climate for foreign investors

Story Highlights

  • A few days ago other business communities such as the German, American and domestic Chambers of Commerce unanimously assessed the current political situation as worrying for the country's economy. Entrepreneurs demanded a response from politics to resolve this situation responsibly in favor of the country's stability.

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TIRANA, June 11- The Foreign Investors Association in Albania (FIAA) has introduced during a presentation the results of the Business Environment Survey 2019, developed with its members which are the most important enterprises in the country, such as banks, companies operating in the field of industry, oil, telecommunications, energy, consulting etc.

Entrepreneurs estimate that the business climate in the first six months of the year was unfavorable. Businesses are asked to rate the climate from 0 to 100, where zero is unfavorable and 100 very favorable and the result was 39. Expectations are a little more positive for the second half of the year, with the index rising to 45 but still falling below 50.

The businesses evaluated the following issues as obstacles for running their activity, monopoly and unfair competition with 68 points, followed by corruption with 67, government bureaucracies with 64, and finally informal economy having 61 points.

Businesses estimate that the worst deterioration is marked by the political climate with 32 points (where zero indicates significant deterioration), followed by transparency in governmental procedures with 38, rule and security with 41, and the public procurement system and procedures with 42 points.

The procedures that have been assessed to have had the greatest improvement are banking system policies evaluated with 52 points, access to finance, labor rules, intellectual property rights, energy supply. Better in the relations with the state authorities are assessed the customs and the central government with 50 points, followed by local government, tax authorities and finally weakened relations with the courts with 49 points.

A few days ago other business communities such as the German, American and domestic Chambers of Commerce unanimously assessed the current political situation as worrying for the country’s economy. Entrepreneurs demanded a response from politics to resolve this situation responsibly in favor of the country’s stability.

Minister of Finance and Economy Anila Denaj on the other hand, confirmed that it is true that two or three foreign companies have left, but according to the 5-month data from the National Business Center, 89 new businesses with foreign shareholders have been opened. Denaj also said the government is open to ongoing dialogue with entrepreneurs, and that bureaucracies have fallen sharply, as confirmed in the World Bank’s Doing Business report.

Minister Denaj also presented the Fiscalization project launched this year, with the aim that in the period of 2020-1 all payments can be made electronically. This will contribute to a very significant reduction of informality. She announced to the businesses the results of the reforms undertaken by the government, such as those dealing with deregulation reform, with licenses that are today given 99 percent online.

 

Tirana Times
By Tirana Times June 11, 2019 15:05