Konfindustria expresses concern about banking sector handling increased business transactions

TIRANA, May.21- The most recent government decision to formalize all business transactions above 300.00 leks, as well as to record all wage expenses through the banking system, has raised concern from Konfindustria, the largest business association in the country. The government has asked Albanian businesses to process 90 percent of all their taxable transactions through the banks, a measure that will increase the workload of all commercial banks in the country. Gjergj Buxhuku, one of the managers of Konfindustria, has expressed urgent concern about the high rate of commissions that banks apply to transactions, as well as their insufficient human resources. Businesses fear there is insufficient staffing within Albanian companies to implement this measure as business cannot transfer all these transactions in one step and may need a more gradual process. The banks also have to adapt to the workload required, as well as extend their market presence, which for the present is only focused in urban areas. Additionally, the government has not carried out a feasibility study to predict potential problems this move may cause for the business community. “Konfindustria calls upon the government to gradually implement the process of formalization and take into consideration the increased costs to business, take initiatives for the banks to lower transaction fees and postpone the implementation date of the law that is currently set for the first of July,” Buxhuku quoted from the statement released by the business association.