TIRANA, Energy, tourism, mining and education are some of the most strategic sectors the Albania government wants U.S. companies to invest in the country. The call came from Albanian Prime Minister Sali Berisha addressing the first US-Albanian Investment Forum held this week in New York.
Some 100 US companies participated in the forum, being acquainted with Albania’s investment potential, environment and taxes.
Prime Minister Berisha made a presentation of the economic development of the country highlighting the economic-fiscal indicators and reforms, as well as the computerization of administrative procedures that the Albanian government has undertaken to make the country more attractive for the foreign investment. “This is confirmed even by the increase of the foreign direct investments in the country as well as the development potentials the country offers in all the fields, its great natural resources, infrastructure, energy and tourism,” said Berisha.
Inviting American investors to invest in Albania, he assured they would be welcome and find a very friendly environment for investments so that their projects become success stories.
Texas-based Sky Petroleum, an oil and gas exploration company operating in Albania also participated in the forum.
“We are very pleased to participate in the first US-Albania Investment Forum, which will enable us to highlight our extensive Albanian assets to the significant number of senior institutional investors attending the event,” stated Karim Jobanputra, Sky Petroleum’s chief executive officer.
The construction of the Durres-Kukes highway by US-led Bechtel-Enka consortium is considered the biggest infrastructural work in Albania.
Trade exchanges between the two countries remain at low levels also because of the big distance. Bank of Albania data show exports to the United States more than doubled to 23 million dollars in 2010, up from 9 million dollars in 2009. Meanwhile, imports from the US grew to 71 million dollars in 2010, up from 65 million dollars in the previous year.
Berisha: No Eurobond issue for 2011
Albania is unlikely to sell bonds in the overseas market this year as a deepening European debt crisis erodes demand for emerging-market debt, Prime Minister Sali Berisha said.
“If we need, we will go to the Euro market, although the climate is not the best,” Berisha told Bloomberg in an interview in New York this week.
Yields on Albania’s 300 million Euros ($409 million) of 7.5 percent bonds due in 2015 jumped 69 basis points, or 0.69 percentage point, in the past month to a record 9.6 percent, according to data compiled by Bloomberg. The government sold the securities on Oct. 28, 2010.
Albania’s debt is equal to 59.7 percent of the country’s gross domestic product. Berisha said the government plans to reduce the ratio by 2013. The economy will likely expand 5 percent this year and grow 5.5 percent in 2012, Berisha said.
The European Central Bank’s bond-purchase program is a “concern” for Albanian policy makers because it’s weakening the Euro, Berisha said.
“The ECB buying bonds from different countries concerns us very much,” Berisha said. “It’s devaluing the Euro. We are not a Euro member country, but we are a Euro-fied economy.”
