- The economy in the face of COVID-19: BoA suspends loan repayments for individuals and businesses
Amid the growing threat of the COVID-19 impact on the economy, the Bank of Albania announced that customers will be allowed to defer credit payments for up to three months.The decision will be valid for individuals as well as private entities.
However, this does not mean that loans will be forgiven. The decision was taken in accordance with measures taken to prevent the spread of coronavirus by avoiding queues in the banks as well as to reduce the negative impact that the coronavirus will have on the economy.
After bars, restaurants and cafes were officially closed on Wednesday to contain the spread of COVID-19, the business and tourism sectors in Albania requested relief packages to reduce the impact of the outbreak. The president of the Albanian Association for the Protection of Traders and Markets called on the government and local government to help business so that that the pandemic does not have severe repercussions on the economy.
- Jaço: “New economic measures need to be taken in order to cope with the impact of the COVID-19”
The President of the American Chamber of Commerce, Enio Jaço, told ‘Voice of America’ during an interview that new economic measures need to be taken in order to cope with the current situation, as the coronavirus will certainly affect the economy in the country. “ It’s a bit early to measure the economic impact right now, but there certainly will be [an impact]. It is important not to panic because it hurts us, not only economically but also in other aspects. However, it is not too early to start looking at possible economic measures, to cope with the situation caused by the coronavirus, ” said Jaço.
As regards the investment climate in the country, the AmCham president said that monopolies and unfair competition remained a concern for businesses. According to Jaço, Albania is also placed on the gray list of money laundering.
- Albania witnesses lowest birth rate in 60 years
In Albania births have been at their lowest level in 60 years, declining to 1.37 children per every woman of reproductive age, from 2.1 which is the necessary limit to maintain the population. Experts claim that there are several causes, including the immigration of women of reproductive age, lack of job security for women, informal wages, and insufficient economic conditions. Officials say they have analyzed the causes and have taken some measures to promote childbirth aimed at economic empowerment of women and protecting them in the workplace, but have not yet begun to take effect.
Fertility in Albania is one of the strongest problems associated with demographic developments. Since 1990 births have declined by 65 percent and during the last 19 years they have fallen below the 2.1 childbearing limit for a woman of reproductive age, which is the required limit for population protection. European and countries in the region have also been affected by this phenomenon, but experts note that the situation in Albania is the most distorted example of the fertility problem.
- MIE postpones deadline for Vlora Airport concession
The Ministry of Infrastructure and Energy has postponed the deadline for submission of bids related to Vlora Airport by potential investors to 30 March. On its official website, the date has changed from March 12, which was initially March 3rd, leaving more time for the interested parties. Such a situation seems to be related to the problems that the coronavirus has created in the country as the focus of institutions has shifted to this area.
Postponing the bidding deadline is expected to bring a postponement of all processes starting from the evaluation process to the projected start date which was earlier announced that it would be at the end of May. The government has decided to guarantee the concessionaire’s revenue for at least 10 years if the amount is lower than 138 million euros. In total the guaranteed revenue should be around 140 million euros, according to government officials.
- Oil and cigarette imports reached peak during 2019
Oil and cigarette imports increased by 3.7 percent and 4.2 percent in 2019, respectively. In 2019, the amount of oil imports totaled 520 thousand tons, reaching their highest level since 1990. Compared to 2018, the amount increased by 18,000 tons or 3.7 percent. Oil imports have fluctuated in recent years, following the ARMO production cycle. When the country’s refinery is up and running, oil imports decline, the opposite being when ARMO is not functional.
Last year, cigarette imports also increased. According to official data from the Ministry of Finance, a total of 2978 tonnes of cigarettes were imported in 2019, marking an increase of 4.2 percent compared to 2018. Market sources claim that the increase was due to a higher number of imports during the last months of the year.
- First post-earthquake reconstruction procedure launched by gov’t
The Albanian government opened the first procedure for the reconstruction of individual houses for families affected by the November 26 earthquake on Tuesday. The Public Procurement Agency will launch a contract procedure titled “Reconstruction of Individual Houses in Earthquake-Affected Areas (under the Reconstruction Process)” with a fund limit of 42.4 million euros as announced last week. This procedure was initiated by the Albanian Development Fund but part of it will be managed by the Municipality of Tirana as a contracting authority.
The official documents give details of the construction models of the future individual houses describing a structure with one floor and a space of up to two bedrooms and a kitchen, based on the number of family members.
- Gov’t to increase salaries of medical staff in the fight against COVID-19
All medical staff who will be on the front line in the fight against coronavirus will receive additional salaries for as long as the virus is present, according to Prime Minister Edi Rama.
“All medical staff, including doctors and nurses, sanitarians and ambulance drivers, therefore all those who are engaged in the front line in the fight against coronavirus, will receive an additional salary; an additional 1 thousand euros will be received by doctors and nurses, while sanitarians and drivers will receive an additional 500 euros, ” he announced on Tuesday.
Rama called specialists outside the health system to return and reflect on their experience to help with this situation.
- Head of KLSH and Swiss Ambassador sign agreement on oversight of PPPs
The head of the Supreme State Audit (KLSH), Bujar Leskaj and Swiss Ambassador, Adrian Maître signed a bilateral agreement on Tuesday to provide new methods, technical skills and technologies in the area of overseeing public-private concessions and partnerships (PPPs).
“The role of the Supreme State Audit is of particular importance in the context of the latest efforts in Albania to improve justice, modernize public administration, and strengthen the fight against crime and corruption. The country needs a sufficient framework to ensure that concessions and public-private partnerships deliver value for money, that risks are mitigated, and that projects are at a reasonable cost for public finances, ” said Swiss Ambassador Adrian Maître.
- Unemployment rate declined further in 2019 according to INSTAT
The unemployment rate declined further during the last quarter of 2019, driven by increased employment in the industry, services and agriculture sectors. According to INSTAT, during the fourth quarter of 2019, the official unemployment rate in Albania was 11.2 percent and in annual terms, the official unemployment rate decreased by 1.1 percentage points.
On the other hand, the annual employment growth rate for the population aged 15 and over, from the fourth quarter of 2018 to the fourth quarter of 2019, is 3.1 percent. In annual terms, the growth of employment rate is 6.4 percent in the industry sector, 2.3 percent in the services sector and 2.3 percent in the sector of agriculture.
