Greek businesses are present in almost every sector of the Albanian economy, including
strategic ones such as telecommunications, banking system, energy, industry, construction, trade and tourism, significantly contributing to the country’s economic growth
TIRANA, Nov. 29 – While neighboring Greece faces its worst ever financial crisis, Greek bankers in Albania assure the four Greek capital banks operating in Albania, which hold around one quarter of the country’s banking assets remain safe. Speaking in the fifth Hellenic-Albanian business forum held last week, Andreas Galatoulas, the President of the Greek association of Businesses in Albania and the country manager of Alpha Bank Albania says deposits in the Greek-owned banks in Albania remain safe recalling that it was the Greek banks which supported the country’s economy.
Nikolaos Pazios, Greece’s Ambassador to Albania described the joint business forum as the most important ever considering and the strengthening of cooperation between exporting businesses as one of the key elements in these times of crisis.
Greece, where an estimated more than 500,000 Albanian immigrants live and work, is Albania’s second most important trade partner and one of the top investors during the past 20 years.
According to a recent report by Raiffeisen Bank International, Greek banks hold some 23 percent of total assets in the Albanian banking sector which remains highly penetrated by foreign banks at 94 percent.
“With deposits continuing to increase strongly, up 16.4 percent in 2010, Greek banks not managing to increase their market share, and there is some evidence that Albanian emigrants in Greece are withdrawing some of their deposits in Greece and channeling them into other foreign-owned non-Greek banks in Albania,” says the report.
Tirana Bank is the biggest Greek capital bank operating in Albania with a 10 percent market share followed by Alpha Bank with a 7 percent share, the National Bank of Greece with 4 percent share. The Emporiki Bank whose majority stake is owned by French-based Credit Agricole Group has minor market share.
Albania’s Parliament has recently approved some changes to legal changes that would protect branches of foreign-owned banks in case their mother banks go bankrupt. The changes focus on converting bank branches into subsidiaries and the establishment of bridge banks as similar measures the European Union has adopted to prevent crisis effects.
Central bank data show Alpha Bank Albania and the National Bank of Greece – Albania are the only two banks operating as branches in Albania with Greek capital.
Greek businesses are present in almost every sector of the Albanian economy, including strategic ones such as telecommunications, banking system, energy, industry, construction, trade and tourism, significantly contributing to the country’s economic growth. The escalation of the crisis there has also hit Albania, with migrants there as the most affected.
International financial institutions cite the Greek crisis impacts while lowering their GDP projections. “The country is particularly vulnerable to a serious Greek downturn, with which it enjoys close linkages through trading, investments and remittances,” says the EBRD in its latets report.
