By Boris Cerni
BELGRADE, Oct 20 – Albania, the poorest country in the Balkans, expects visa-free travel with the European Union to provide the biggest boost to its economy in two decades, central bank Governor Ardian Fullani said.
“This will be the most important thing that happened in the last 20 years for Albania, its citizens and the whole region,” Fullani, 65, said today in an interview at a business conference in Belgrade. “No doubt this will positively impact the economy.”
Gross domestic product is forecast to expand an annual 3.2 percent this year with exports driving the recovery and “good promises” for growth next year, he said. Inflation is targeted in a band of 2 percent to 4 percent and price growth is “under control,” he said. The economy expanded 2.8 percent last year, according to the International Monetary Fund.
Albania, a potential candidate for EU membership, relies on annual remittances from abroad, which equal about 15 percent of GDP, mostly from citizens living in Italy and Greece, according to the CIA factbook. The Adriatic Sea nation that became part of North Atlantic Treaty Organization in April last year will gain visa-free travel to the 27-nation bloc along with Bosnia- Herzegovina by year’s end.
Greece Impact
The economy hasn’t been “too adversely affected” by Greece’s debt crisis, Fullani, who was appointed to a seven-year term in 2004, said. The nation had GDP per capita at $6,400 in 2009, which compares with Slovenia’s $24,000, the wealthiest nation in the Balkans.
The country has lagged behind other former communist states in east Europe in allowing competition into the formerly state- controlled economy. It is working to improve infrastructure and beef up corporate governance to attract more foreign investment, he said.
“The banking industry is stable and well capitalized, Fullani said. ”Non-performing loans have peaked.”
Albania will avoid asking the International Monetary Fund for assistance as government ”significantly reduced” expenditure, Fullani said. (Bloomberg)
Four car companies fined $350,000
TIRANA, Oct. 18 – Four car companied operating in Albania have been fined a total of 35,6 million lek (350,000 dollars) for violating competition rules in public procurement, according to a decision by the Albanian Competition Authority.
An investigation by the watchdog covering the January 2007 to December 2009 period showed signs of collaboration which were described as banned deals among “Classic,” “Ultra Motors,” “Noti” and “Hyundai Auto Albania” car companies when participating in public tenders offering new cars.
The watchdog says it possesses a series of print and electronic materials proving that the four companies used secret deals to avoid competition when participating in public tenders.
Under the Competition Authority’s decision, “Classic” has been fined 25.7 million lek, “Hyundai Auto Albania” 5.3 million lek, “Noti” 3 million lek and “Ultra Motors” 1.5 million lek.
Konfindustria: CEZ not fulfilling its end of bargain
TIRANA, Oct 18 – Konfindustria, a large Albanian business organization, has expressed concerns about the losses the country’s important industries are suffering due to the bad quality of the power supply. It wants to change and improve the legal terms of contracts between businesses and CEZ Distribution, based on EU standards.
The organization also said in a statement that individual contracts could also follow suit.
Konfindustria sent a few days ago an official request letter to the Ministry of Economy, Trade and Energy and the Electricity Regulatory Authority (ERE), the two bodies in charge of the matter.
Konfindustria says that despite significant improvements in the past three years in the amount of electricity supplied the following problems continue: the quality of provision of supply, the level and volatility of voltage, frequent and unexpected cuts, etc. All the above affect businesses directly with additional financial cost of tens of million euros annually for local industries with serious consequences for the activity. The situation is even more significant if the value that above everything going on in terms of the consequences of global economic and financial crisis.
Konfindustria says the state authorities need to intervene in the Albanian power system where after the OSSH privatization, Albania went from public monopoly to private monopoly. So it is now appropriate to review the necessary legal mutual relations.
“Improvement of the contract must necessarily move to mandatory carriage of additional financial costs incurred for the industries / businesses from damage due to the quality of power supply,” the Konfindustria statement says.
