Albania takes over Black Sea Bank presidency

TIRANA, Nov. 23 – Albania has taken over the rotating presidency of the Black Sea Trade and Development Bank (BSTDB), one of the most important emerging private sector financial supporters in Albania. In a three-day meeting held this week in Tirana, the BSTDB General Assembly, which will be chaired by Albanian Parliament Speaker Jozefina Topalli, focused on “ITC as an impetus for sustainable economic development… improving tax systems in BSTDB member countries and… cultural, educational and social issues.” Addressing the first Black Sea Business Forum held in Tirana, Topalli appealed to participant businesspeople to consider Albania’s investment opportunities, unveiling the reforms the government has taken to improve the business climate in the country. “This forum is a catalyst and a powerful promoter further strengthening relationship and exchanges among Black Sea member countries,” said Topalli as quoted by her press office. Some 400 businesspeople among whom, entrepreneurs from Turkey’s TUSKON Confederation of Businessmen and Industrialists, business representatives from Albania and other BSTDB member countries attended the three-day forum held in Tirana from Nov. 21 to 23. “This forum, held for the first time in Albania, is a major economic, political and partnership event between politics and business as a more efficient platform to promote economic development in each country,” added Topalli. Earlier this year, the Black Sea Trade and Development Bank (BSTDB) said it planned to lend over 50 million Euros in Albania during the 2011-2014 period mainly focusing on trade related activities, the development of infrastructure and energy efficiency. The lending strategy for the next four years in Albania was announced during an annual meeting of the BSTDB’s board of directors held last weekend in Tirana. The 50 million Euro loans which BSTDB plans to give to companies operating in Albania is almost twice as high as the current loan portfolio. BSTDB’s portfolio in Albania consisted of seven approved operations with a total amount of 61.4 million EUR at the end 2010. The portfolio is well diversified and includes investment in telecommunications, steel production and health (Albtelecom, Kurum International and Hygeia Hospital). In 2010, BSTDB also invested in Albanian government bonds worth EUR 10 million. Andrey Kondakov, the BSTDB’s president says the agriculture and tourism sector will also be financially supported during the next four years. The bank supports both the private and the public sectors. Private sector support starts from 3 million Euros to 40 million Euros. Albania has been one of the primary member countries of the BSTD since 1997 with its shareholding percentage is 2 percent. The Black Sea Trade and Development Bank (BSTDB) expects the Albanian economy to grow by 3.7 percent in 2011, up from 3.1 percent in 2010 and the inflation rate to remain within the central bank’s target of 3ѱ percent. “The preservation of macroeconomic stability, keeping the inflation rate around 3 percent, reducing the deficit and public debt to the level of 54 per cent for 2013, as well as reducing the current account deficit, constitute the basic objectives of the coordinated monetary and fiscal policies of the country,” says the BSTDB. Based in Greece’s Thessaloniki, BSTDB was established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine which are the 11 founding countries of the Black Sea Economic Cooperation (BSEC) as a financial pillar of BSEC. Since 1999, BSTDB’s cumulative portfolio in its 11 member countries reached 256 operations in the key sectors of infrastructure, energy, transport, manufacturing, telecommunications, financial sector and other important areas to the total amount of EUR 2.4 billion.