Tirana Stock Exchange Recovery

Tirana Stock Exchange was the first stock market in Albania, opened on May 2, 1996 in the form of a Bank of Albania Department (as integral part of it). Its opening by Bank of Albania was not casual. Like all countries of Central and Eastern Europe on a similar past with Albania, the State was the promoter and the main supports of
establishing stock markets. However, in Albania it was followed a different model from these countries experience, as Tirana stock Exchange was determined to establish under the Central Bank rule and this was for the following reasons:

• The lack of a previous tradition with this respect;
• The limited range of financial instruments;
• A weaker private sector than other comparable Central and Eastern European countries, the deficiency of
  equity securities and entitlements from the private sector;
• The lacking incipience for the privatization of the large strategic enterprises;
• Few opportunities for the assurance of economic efficiency of this new institution within a short-term;
• The deficiency of experts and respective adequate experience outside the financial institutions of state
  (Bank of Albania - in our case).

Being aware that the mid-term activity for this Stock Exchange will not be the transaction of equity securities, the
Government in collaboration with the Bank of Albania and the Securities Commission decided to organize the primary and the secondary auction of T-bills attached to Tirana Stock Exchange.