2007年-世界发展银行全球_Albania___Access_to_Finance_for____________Enterprise_Sector_88页_5mb

Summary of Albania Access to Finance for Enterprise Sector

Core Content

This report, prepared by the World Bank in 2007, analyzes the access to finance for the enterprise sector in Albania, focusing on both demand and supply constraints. It outlines the current state of the financial system, highlights the challenges faced by firms in accessing credit, and provides policy recommendations for improving financial intermediation and credit infrastructure.

Main Points

Macroeconomic Environment

• Albania has shown strong economic recovery since the 1997 financial crisis, with real GDP growth averaging nearly 7% from 1999 to 2006.
• Despite macroeconomic stability, investment levels have declined, with 2006 investment at 25.3% of GDP, below the 2001 peak of 29%.
• The business environment remains a major constraint for further growth and investment, with informality affecting over 50% of economic activity and employment.

Credit Access and Utilization

• Credit to the private sector remains low, at 18% of GDP, compared to higher levels in neighboring countries.
• Credit is heavily concentrated among large firms and specific sectors, with SMEs and rural agri-businesses being underserved.
• Only about 13% of firm financing comes from credit, with companies relying mostly on internal funds for growth and investment.

Financial Sector Characteristics

• The banking sector is significant, with total assets exceeding 40% of GDP, but credit to the private sector is limited.
• Over 70% of loans to firms are in foreign currency, while most firms operate in local currency.
• The credit infrastructure is underdeveloped, with limited collateral registration, enforcement, and credit information systems.

Microfinance and Non-Bank Financial Institutions

• Microfinance institutions (MFIs) and credit unions (SCAs) have expanded credit to underserved segments but remain limited in scope.
• MFIs and SCAs serve about 20% of the financial system's clients, with a portfolio of around US$95 million by the end of 2006.
• The development of these institutions is constrained by legal and institutional weaknesses, and their future growth depends on additional funding, technical assistance, and institutional setup.

Credit Instruments and Market Development

• Leasing and factoring are in early stages of development in Albania, with leasing accounting for less than 0.05% of private sector credit and factoring being practically non-existent.
• These instruments could be developed further with improved legal and fiscal frameworks, as well as increased awareness among businesses.

Constraints on Credit Growth

• The main constraints for sound credit growth include:
  • Collateral registration and enforcement issues
  • Limited credit information due to the absence of a robust credit registry
  • Poor accounting and audit practices
  • Informality and weak borrower protections

Key Recommendations

Improve Financial Intermediation

• Short-Term (1 year): Establish a credit registry with positive and negative information for all outstanding loans, ensuring compliance with financial confidentiality laws.
• Medium-Term (1-3 years): Expand the credit registry to include other financial services, such as microfinance and credit unions, and promote credit bureaus.
• Long-Term (3-5 years): Develop information-based market mechanisms for ongoing company evaluation and ratings based on financial results and market developments.

Strengthen Land Registration and Collateral Systems

• Short-Term: Improve the operations of the Immovable Property Registry System (IPRS) to ensure reliable property registration.
• Medium-Term: Address land fragmentation and provide electronic access to creditors and investors.

Enhance Judicial Procedures for Collateral Enforcement

• Short-Term: Amend laws (Articles 522, 564, 577, and 573) to introduce deadlines for debtor notification, formalize asset valuation, increase collateral discounts, and establish a legal framework for auctioning foreclosed assets.

Enhance Consumer Awareness and Protection

• Short-Term: Foster public awareness on credit terms and conditions and encourage transparency in the total cost of credit.
• Long-Term: Publish standardized credit products (e.g., credit cards, mortgages) in comparative terms to enhance consumer understanding.

Encourage Growth of Credit Unions and Microfinance Institutions

• Short-Medium Term (0-3 years): Work with donors and international financial institutions (IFIs) to identify funding and technical assistance for credit unions and MFIs.
• Short-Medium Term: Continue tax exemptions for credit unions to support their development in underserved areas.
• Short-Medium Term: Consider making the Mountain Areas Finance Fund (MAFF) a credit institution and ensure it operates commercially with proper governance.

Facilitate Development of New Instruments

• Short and Medium Term (0-3 years): Reduce capital requirements for leasing companies and clarify the regulatory environment for financial leasing.
• Short and Medium Term: Clarify the fiscal treatment of leasing in the context of value added tax (VAT) and allow invoices to be recognized as debt instruments for use as collateral.
• Short and Medium Term: Encourage the enhanced use of factoring by recognizing invoices as debt instruments for working capital loans.

Conclusion

Albania's enterprise sector faces significant challenges in accessing credit, which limits growth and investment. While the macroeconomic environment has improved, the financial sector needs stronger infrastructure, better legal frameworks, and more transparency to support credit expansion and diversification. Policy reforms aimed at improving credit information systems, collateral registration, and the development of microfinance and non-bank financial institutions are critical for enhancing access to finance and promoting a more dynamic and productive private sector.