The Investment Council held its 35th meeting which focused on the topic “Access to Finance – On the Improvement of Financial Instruments.” FIAA was represented in this meeting by its Board Member, Mr. Mirsad Haliti.
Mr. Haliti addressed several challenges impacting access to finance, such as informality and the widespread use of cash as primary obstacles for banks; the higher capital requirements for banks in Albania compared to the European Union; the influence of the government through the need for public debt which stands in competition with need of the private sector for loans; as well as issues with the cadaster and ownership, as well as the inefficiency of the courts, as additional factors that complicate lending.
Mr. Haliti commended the positive initiative of the government to establish a Credit Bureau, emphasizing that the lack of credit information has been a significant problem, and the Credit Bureau could help address this. While there has been some improvement, he noted that Albania still has a higher level of non-performing loans compared to the regional average, an issue that must be tackled to ensure a healthier financial sector. Overall, Mr. Haliti described the Albanian banking sector as developed and stable but acknowledged that external economic factors continue to limit its further growth.
Find more information on this meeting in the following link: https://www.investment.com.al/meeting-of-the-investment-council-addressing-challenges-to-improve-msmes-access-to-finance/