Konfindustria demands measures to prevent capital outflow

TIRANA, May 31 – Concerned about the consequences of the ongoing severe financial crisis in neighbouring Greece, Albania’s business community represented by Konfindustria has called on the government to be careful with the capital illegally flowing out of Albania. The strict implementation of laws enforced by the government, the Bank of Albania and the State Intelligence Service would be an important condition to keep capital at home, says Konfindustria’s administrator Gjergj Buxhuku. The rapid implementation of the partial fiscal amnesty law would be another solution. “All necessary actions increasing financial inflows to the Albanian economy must be undertaken, first of all including the rapid application of the fiscal amnesty in force for the citizens living in Albania or outside it, including Greece.” Konfindustria says that if these measures are taken, the Albanian economy will not be affected by the crisis, but could in the long-term benefit from the crisis in its neighbouring country. The EBRD has recently warned that Albania remains particularly vulnerable to a serious Greek downturn as the majority of remittances into Albania come from migrants in Greece, many of whom work temporarily in seasonal jobs. “The key macroeconomic risk in Albania stems from potential spillover effects from Greek crisis, mostly in the form of falling investment, lower remittances, higher costs for local subsidiaries of Greek banks and reduced trade flows,” says the EBRD. Albania has more than 600,000 immigrants in Greece, who make up 10 percent of Greece’s total workforce.