Companies should invest on market analysis, Fullani says

TIRANA, Nov 24؁rdian Fullani, the central bank governor, has asked companies in Albania to be more careful with their policies in 2010 as effects from the global economic crisis have yet to wear off. He asked businesses to work independently from the rivals in order to be more efficient.
“It’s time for businesses not to act in packs. If one major business acts a certain way, all others will follow suit in Albania. Such a move is made without taking into consideration the market size and competitiveness capacities,” Fullani said in a meeting with business community.
According to Fullani, companies should work harder in market analysis in order to develop their competitiveness.
The Bank of Albania has asked companies to improve their decision making by creating a long term vision and investment implementation supported by detailed business plans.
The business community has been urged to make a better use of its financial and human resources. Many companies in Albania become successful by diversifying their business portfolio, but Fullani warned that such diversification should not harm specialization and efficiency.
On the other hand, the governor made an appeal to the banking system to loosen up its financing standards, especially in regards to loans in lek묠the Albanian currency, so as to support investment growth in the private sectors. Two thirds of the loan portfolio in the banking system is made of investment loans to the private sector.
According to BoA, the banking system is still troubled by liquidity problems and the country has yet to shake off the global crisis effects on its financial and microeconomic stability.
However, as the whole global economy remains weak and still in recovery, Fullani expresses his optimism regarding Albania’s economy, which is still forecasted to record on of the highest GDP growth in 2009, both in the region and in Europe. The future of Albania’s economy is depended on deep structural reforms, quality decision making, and the development of competitive advantages, Fullani concluded in the meeting.