Fullani: FDI attraction key for SEE’s growth

TIRANA, June 7 – Central bank governor Ardian Fullani says the attraction of foreign direct investment (FDI) remains the main target for the Southeast European countries. Addressing an annual meeting of the European Fund for Southeast Europe (EFSA) in Tirana on Tuesday, governor Fullani said that without FDI inflows the region will remain small, fragmented and with low potential for social and economic development, with sporadic exports and low productivity. “To me every foreign investment means faster convergence to Europe,” said Fullani. The governor of the Bank of Albania said the region needs a better balance supporting sustainable economic growth, urging public authorities to give a priority to investments and stimulating policies to develop competitive sectors. Urging structural reforms, governor Fullani supported the idea of the full privatization of public assets, which is a hot issue even in Albania where the government intends to sell almost all remaining public assets. Praising the region’s ability in successfully handling the global financial crisis, Fullani said current and future challenges call for coordination of actions at a local and regional level. This year’s EFSE meeting was held in Tirana from June 6 to 8. The EFSE is one of the largest creditors of the Albanian MSE finance sector. It has offered a total of approximately EUR 40 million of funding to local financial institutions since its start of operations in Albania in 2007. The core theme of this year’s event – the fifth of its kind– was “Shaping and Leveraging the New Reality.” It addressed new aspects and opportunities for the development of finance in Southeast Europe and Caucasus in the aftermath of the crisis, with a special focus on micro, small and medium enterprise (MSME) finance. Through keynote speeches, interactive panel discussions and special focus workshops, participants had a unique opportunity to meet with fund representatives, financial sector experts from international financial institutions, banks and microfinance institutions, as well as with investors from the private and public sector.