PRESS RELEASE
Second Financial Forum of Albania, 26 March 2014

On 26 March 2014, the second Financial Forum of Albania was organised under the auspices of the Governor of the Bank of Albania, Mr. Ardian Fullani. The Forum was co-organised with the International Monetary Fund and provided a platform for discussion among major banking groups active in Albania and their subsidiaries, Albanian authorities that monitor the financial system, and representatives of the World Bank, European Bank for Reconstruction and Development, European Banking Authority, and European Central Bank. The Albanian Minister of Finance Mr. Shkëlqim Cani and Albanian Minister of Economic Development, Trade and Entrepreneurship, Mr. Arben Ahmetaj also attended and addressed the Forum.

Discussions focused on the analysis of current developments and the prospect of the economy and financial system in Albania, especially in the light of structural reforms undertaken by the Government of Albania, supported by the recent arrangement with the International Monetary Fund.

In addition, the participants discussed the role of the financial system, in particular of the banking sector, in supporting the country's economic development. Swift action to reduce the share of non-performing loans was considered as particularly important for boosting financial intermediation. Participants highlighted that these efforts are endorsed by the recent legislative changes on collateral execution, changes that will be adopted in the near future about the taxation of loss loans write offs, and the practical expertise provided by the World Bank. The measures are complemented by structural reforms undertaken lately by the Government of Albania to improve the business climate in Albania. Participants considered that lending to small and medium-sized enterprises in Albania has growth potential.

Furthermore, the Forum discussed issues related to the business strategy of local banks, members of larger European-based cross-border banking groups, appropriateness of the regulatory framework and the impact of European initiatives on banking activity. In this regard, participants from European-based cross-border banking groups iterated their commitment to support the activity of their subsidiaries in Albania.

In conclusion, participants welcomed the Forum as a platform providing the possibility to openly exchange views and identify issues for follow up.

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The first Financial Forum of Albania was held on 8 April 2013. It was organised under Vienna Initiative II, which brings together major international banking groups active in Central Eastern and South-Eastern Europe, their local subsidiaries, home and host country supervisory authorities, as well as international organisations to discuss and resolve issues of mutual interest. (www.vienna-initiative.com)