Albania overview

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View list of EBRD projects in Albania

In Albania we focus on:

Promoting Sustainable Energy Policies and Environmentally Sound Investments. The EBRD will work closely with the Albanian authorities and the independent regulators to enhance the regulatory and administrative framework for private sector investments, particularly in the renewable energy sector. The EBRD, through its dedicated facilities, will finance energy efficiency and renewable energy projects and, in cooperation with other IFIs and commercial banks, will support the upgrading and financial viability of energy generation and distribution. Interconnection lines and gas pipeline will also be of key importance for improving competitiveness and regional integration.

Enhancing commercialisation, competition and private sector involvement in infrastructure, alongside targeted public projects. We will assist the Albanian authorities, both at the national and local level, to increase private sector involvement in transport and municipal services, including in road maintenance. Financial assistance will be complemented by technical advice, capitalizing on the EBRD's experience to successfully structure and implement PPP and concession financing. We will also work closely with the Government on advancing transition in the seaport and railways sectors.

Supporting the development of a more competitive private sector. The EBRD will continue to be a strong partner for foreign investors and for local corporates, both directly and through the Local Enterprise Facility (LEF). We will pursue an active investment policy in sectors such as agribusiness, manufacturing and services, ITC and tourism, all of which have the potential to modernise and increase value creation in the Albanian economy, which is still too reliant on imports and labour-intensive textile subcontracting.

Strengthening the financial sector and deepening intermediation. The EBRD will support the banking system in a difficult market environment with credit lines and other facilities such as the Medium Size Co-Financing Facility (MCFF). The EBRD, through a close consultation with the Bank of Albania, will respond in a timely way to emerging needs of the local financial sector.

The EBRD’s latest Albania strategy was adopted on 11 December 2012

EBRD forecast for Albania’s Real GDP Growth in 2015 2.5%

EBRD forecast for Albania's Real GDP Growth in 2016 3.0%

Albania’s macroeconomic performance has improved within the framework of the IMF arrangement. In particular, the gradual clearance of public sector arrears is providing a boost to suppliers, while efforts are being made to tackle the problem of high NPLs in the banking sector, which is among the highest in the sub-region. Monetary policy of the Bank of Albania has continued to be accommodating, with the policy rate cut to a new record low of 2 per cent in January 2015 as inflation remained low and in order to support the weakened economy. However, fiscal space remains limited by the high level of public sector debt, while negative spillovers from Greece – an important trading partner and source of remittances – remain a key risk to growth. The severe floods that hit Albania in February 2015 have also negatively affected the economic outlook. We maintain our January forecast of 2.5 per cent growth in 2015, rising to 3 per cent in 2016 on the back of an improved external environment (in the eurozone), the start of the major construction work on the Trans-Adriatic gas Pipeline (TAP), and expected policy moves to reduce the high level of NPLs.
Albania in the latest BEEPS survey


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