Download - Raiffeisen Bank International AG

Financial Market Report
Albania
AUSSENWIRTSCHAF T AUSTRIA
In cooperation with AUSSENWIRTSCHAFT AUSTRIA.

Country Profile: Albania
Raiffeisen Research. As in April 2013.
The Albanian Financial Market
Currency: Albanian lek (ALL)
Gross Domestic Product and Budget 2011 2012 2013e 2014f
Real GDP growth, % p.a. 3,1 2,0 2,0 3,5
Nominal GDP, €bn 9,8 10,2 10,7 11,4
Per capita GDP, PPP basis, € 7800,0 7900,0 8100,0 8400,0
Growth in industrial output, % p.a. 3,0 3,0 3,0 3,0
Consolidated budget deficit, % of GDP -3,5 -3,0 -3,0 -3,0
Inflation and Employment
Jobless rate, annual average, % 14 13,33 13,5 13,6
Average monthly gross wage, € 321 345 347 358
Consumer price inflation, annual average, % p.a. 3,5 2 2,5 3
Balance of Trade and Current Account
Goods exports, €bn 1,4 1,5 1,4 1,6
Goods imports, €bn 3,9 3,8 3,5 3,5
Current account deficit, €bn -1,1 -0,9 -1,0 -1,1
Current account deficit, % of GDP -11,3 -8,8 -9,1 -9,2
Foreign debt, % of GDP 23,6 24,5 24,3 26,4
1. The Political Situation and Economic in Albania .......................................... 4
2. Company Law ..................................................................... 5
3. Taxation and Legislation ............................................................. 7
4. Privatization ....................................................................... 9
5. Arbitration ....................................................................... 10
6. Subsidies and Support ............................................................. 11
7. Risk Mitigation and Finance ......................................................... 14
8. Payment and Account Services at Raiffeisen Bank Sh. a. ................................. 19
9. Raiffeisen Bank Sh. a. .............................................................. 22
10. Your International Business Specialists at Raiffeisen Bank Sh. a.
and the Global Raiffeisen Network .................................................... 23
Rates of Exchange and Interest Rates
Local currency/US$ (average) 100,8 108,2 103,4 104,0
Local currency/€ (average) 140,3 139,0 138,5 138,3
3-month money market rate (TRIBOR), average, % 7,0 6,9 6,5 6,3
Country Ratings
S&P B+
Moody‘s
B1
Fitch
not rated
Important:
Despite thorough research and the use of reliable sources, we cannot accept responsibility or liability for the
completeness or accuracy of this brochure’s contents. The purpose of this brochure is to give you initial, general
information to help you develop business relationships in Albania. The content of this brochure does not constitute
any form of advice or offer or invitation to make an offer.
Prepared in cooperation with AUSSENWIRTSCHAFT AUSTRIA at WKÖ (the Austrian Federal
Economic Chamber).
Sources:
Raiffeisen Bank International AG
WKO: Albania Country Report of the AUSSENWIRTSCHAFT AUSTRIA
Bibliography: Skok B., Gotwald A., Jungreithmeir T. (2008), Förderinstrumente für Südosteuropa (Subsidy and
Support Instruments for Southeastern Europe). Vienna: Linde Verlag Wien.
Copy deadline: May 2013.
2
3

1. The Political and Economic
2. Company Law
Situation in Albania
Good Adjustment
Over the years, Albania has developed into a modern market economy with, among other things, a move
away from agriculture to services and construction. The economy grew on average by approx. 4% annually
in the years 2008-2012. Albania was one of the few countries in Europe to register growth in GDP even
during the financial crisis of 2009. Albania has strong trade links with Greece and Italy and so the problems
in these two countries are also having an impact on the development of its economy. It is nonetheless
anticipated that in the next few years growth rates will more or less return to the levels achieved before the
financial crisis. The International Monetary Fund (IMF) predicts growth of 1.7% for the year 2013 and the current
consensus is that it will be 2.2%. Both are more or less in line with our estimate of 2%. The main reason
for the growth in the economy in 2012 was the high demand from abroad, with investments already made
in the energy sector or in infrastructure, for example, also contributing to growth. This led to a reduction in
the historical dependence on money transfers from emigrants and on construction.
Despite some significant improvements in recent years, parts of the infrastructure, energy and water supply,
and the road and rail network are still in a very poor state. On the other hand, the banking system is on a
par with those in Western Europe. The government has developed a reform package to attract increased
foreign investment. Albania is also party to the Central European Free Trade Agreement, which has set itself
the target of dismantling customs duties and abolishing non-tariff trade barriers within the signatory countries.
Albanian citizens have been able to enter the Schengen area without a visa since 15 December 2010.
Last year also saw increased diversification in trade relations, with a reduction in the still very strong trade
links with Italy and Greece and stronger trade relations with countries such as Germany, Turkey, and China.
The EU Commission regularly issues reports on the political and economic progress of countries that are
potential candidates for EU membership. According to these reports, as of 22 March 2013, Albania has
made progress but further efforts are required before the country can successfully apply for membership.
One of the requirements, for example, is the holding of elections by European standards, something which
Albania can demonstrate in the parliamentary elections in 2013.
The political system in Albania is still being developed. Prime Minister Berisha‘s Democratic Party (DP) has
been in power for 8 years and will also seek a further mandate from the electorate in 2013 to complete the
infrastructure projects it has already begun. The Socialist Party (SP) opposition, led by the former Mayor of
Tirana, Edi Rama, will once again seek to persuade voters that a change of government will stimulate economic
growth. Both parties, however, share the wish to join the EU and so efforts will continue to be made
in this direction whatever the outcome of the elections.
Forming a company
Albania’s economic development depends on foreign investment. Not only is foreign capital important; so
too is business know-how. A modern foreign investment act based on World Bank guidelines and enacted
in 1993 (Law No. 7764) makes it possible to form companies that are 100% foreign-owned, and whose profits
can be transferred out of Albania. Foreigners can own ordinary land, but they can only own building land
if the value of the investment is at least three times the value of the land. Albanian subsidiaries can own land
without any restrictions. The land register is far from reliable, so one must carefully check who really owns
a property. A new companies act has been in force since 2007. In practice, setting up a branch (for which
the same accounting rules apply as to a subsidiary) or a representative office (which is not allowed to carry
on any business activity) is a possible alternative to, or preliminary stage of, forming a company (which will
usually be a limited liability company). In these cases, the same registration requirements apply, in theory
at least. According to Law No. 9723 (dated 3 May 2007, and which came into force on 1 September 2007)
concerning the National Registration Centre (NRC), new entities are to be registered with the NRC. The
list of documents required for the initial registration of a new company with the NRC will depend on the
particular company’s legal form.
Generally, the following documents will be required to register a new company with the NRC:
• an application form signed by the company’s legal representatives or by the authorized persons;
• the memorandum and articles of association signed in the presence of a notary public;
• the document that specifies the company’s boards and bodies if not included in the above articles.
The following documents will be required to register a branch or representative office with the NRC:
• an application form signed by the company’s legal representatives or by the authorized persons;
• the memorandum and articles of association of the parent company and all amendments thereto;
• a document proving the foreign entity’s registration in its country of domicile;
• a document evidencing the good standing of the foreign legal entity issued no more than 90 days before
the date of application, and which states the date of registration, other relevant dates, and whether the
entity is in bankruptcy or liquidation;
• if the foreign entity has been active for more than one year, its balance sheet for the most recent financial
year prepared in accordance with the standards applicable in the respective foreign country;
• a resolution by the competent body of the foreign legal entity regarding the setting up of a branch or
representative office in Albania; if the person filing the application is also the competent body authorized
to act alone on the foreign legal entity’s behalf, the registration application form will subsequently serve
as a replacement for the relevant documents;
• the document appointing the branch or office manager if the appointment is not included in the above
resolution.
Completion of the registration process and the issued registration certificate constitute proof of the
applicant‘s business registration, fiscal registration and registration with the social insurance, health insurance
and labour inspection authorities. All documents must be translated into Albanian and notarized.
4
5

3. Taxation and Legislation
The minimum capital required to form a limited liability company (sh.p.k.) is ALL100 (approx. €0.75). The
minimum capital required to form a joint stock company by way of a private offering is ALL2,000,000
(approx. €14,652). The minimum capital required to form a joint stock company by way of a public offering
is ALL10,000,000 (approx. €73,650). In addition, there will be lawyers’, notaries’ and registration fees, totalling
about €1,000 to €2,000. From the date of the new act coming into force, share capital need no longer
be paid in. Forming a company will take about one to two months. The actual formation process can be
carried out relatively simply in one place (one-stop-shop system).
Company taxation
There has been a flat rate of tax (income tax, corporate tax) of 10% since 1 January 2008.
Tax is assessed on the basis of annual profit.
VAT/VAT number
In 1996, 20% VAT was introduced on paid supplies, services and imports. When machinery is imported for
investment purposes, the VAT is only payable after six months. Since 2011, and for the first time in Albania,
there has been a reduced VAT rate of 10% on medication and medical services. Companies that are not
registered for VAT do not have the option of getting a rebate on the value-added tax.
Input tax deduction
Input tax deduction is theoretically possible in accordance with the basic model. In practice, there are few
rebates and those that do exist are severely delayed, but it is possible to make arrangements with the
Albanian authorities regarding offsetting this against other taxes due.
Excise tax
Luxury goods such as beverages, coffee, and fuel are subject to excise tax.
Double taxation agreement
A double taxation agreement with Austria has been in force since 1 January 2009.
Customs regulations
A new customs act (Law No. 8449 of 27 January 1999) and a new ministerial order on customs (Ministerial
Order No. 205 of 13 April 1999) entered into force in 1999. As a result, Albania’s customs procedures are,
in principle, in line with EU customs procedures. The combined nomenclature applies, but the details have
yet to be harmonized with international regulations. Rates of duty range between 0 and 10%. The most
important categories are 0, 2, and 10%.
6 7

4. Privatization
There are no export duties.
The CEFTA free-trade agreement is in force with the countries in the region. It provides for the duty-free
importation of most of the products manufactured in the region. A duty-free agreement with the EU is
in place as part of the interim Stabilization and Association Agreement and has been in force since 1
December 2006. Since 1 January 2011, industrial products produced in the EU can be imported to Albania
as duty-free products. There are plans to further cut duties for agricultural, as well as some other products
All foodstuffs imported to Albania must be shipped with a certificate of quality.
Building companies that bring machinery and equipment into Albania within the scope of investments or
for their own use do not have to pay duty on those items. There are also exceptions for oil-producing companies
and within the scope of humanitarian aid. No ATA carnets are issued for Albania. Equipment used
professionally can be imported duty free on a temporary basis for up to six months. To do so, one must
submit a letter of confirmation, in English and in duplicate, which provides personal information about the
traveller, along with the purpose and duration of their visit and a list of the items he or she is bringing together
with precise information about the value of each item. The basis for customs clearance is the cost of
goods, including transportation and insurance costs, commission payments, packaging costs, and other
costs associated with this. Temporary duty-free import may be repeated and extended. You must contact
the Albanian General Directorate for Customs (http://www.dogana.gov.al/) in order to do this.
The relevant contacts in Albania are the MINISTRY OF ECONOMIC AFFAIRS Ministria e Ekonomisë
Bulevardi Deshmoret e Kombit 2, Tirana Phone: +355-4-222 2655 mvokshi@mete.gov.al www.mete.gov.al
and the Albanian Agency for Business and Investments (ALBINVEST)
http://www.albinvest.gov.al/
8 9

5. Arbitration
6. Subsidies and Support
Albania ratified the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New
York Convention) in 2000. In it, the contracting states undertake to recognize and enforce arbitral awards
made in another contracting state.
Consequently, the jurisdiction of the Internationales Schiedsgericht der Wirtschaftskammer Österreich
(International Arbitral Centre of the Austrian Federal Economic Chamber), the International Chamber of
Commerce (ICC) or another arbitrator can be agreed in your contract with an Albanian counterparty.
Unlike the judgements of state courts, arbitral awards can be enforced practically worldwide. For a dispute
to be settled by a court of arbitration, its jurisdiction must have been agreed upon beforehand in writing. It
is therefore advisable to include an arbitration clause in the contract with your foreign counterparty.
The Austrian Federal Economic Chamber offers institutional arbitration as a service through the International
Arbitral Centre of the Austrian Federal Economic Chamber.
EU subsidies and support
The current EU support programme for Albania is the extensive IPA (Instrument for Pre-Accession
Assistance). The IPA has been allocated a total budget of €11.5 billion for the years 2007 through
2013. Since 1 July 2007, it has replaced the other pre-accession instruments (PHARE, ISPA und SAPARD)
and the CARDS assistance programme for the Western Balkans. However, expiring calls for proposals still
exist under the old programmes.
The purpose of the IPA is to help EU candidates gradually come into line with EU standards and the EU
political system. It is aimed at the EU accession candidates whose status has already been recognized
(Croatia, Macedonia, Turkey) and the prospective applicants for EU membership (Albania, Bosnia and
Hercegovina, Kosovo, Montenegro and Serbia).
The IPA is made up of five components:
The arbitration clause of the International Arbitral Centre of the Austrian Federal Economic Chamber reads
as follows (versions are also available in the languages that are most important for Austrian exporters):
‘All disputes arising out of this contract or related to its violation, termination or nullity shall be finally settled
under the Rules of Arbitration and Conciliation of the International Arbitral Centre of the Austrian Federal
Economic Chamber in Vienna (Vienna Rules) by one or more arbitrators appointed in accordance with
these Rules.’
Useful agreements to supplement this arbitration clause:
1. Support for transition and
institution-building
2. Cross-border cooperation
3. Regional development
4. Human resources development
5. Rural development
(
(
>
(
(
>
For all beneficiary countries
For candidate countries only
• the number of arbitrators shall be .......................... (one or three);
• the applicable law shall be ............................;
• the language used during arbitration proceedings shall be ......................................
Detailed information:
Internationales Schiedsgericht der Wirtschaftskammer Österreich
International Arbitral Centre of the Austrian Federal Economic Chamber
Dr. Manfred Heider; Phone: +43-5-90 900-4398; Fax: +43-5-90 900-216.
E-mail: arb@wko.at; Internet: wko.at/arbitration
• ICC Austria, International Chamber of Commerce
Maximilian Burger-Scheidlin; Phone: +43-5-90 900-3701; Fax: +43-5-90 900-3703;
e-mail: icc@wko.at; Internet: www.icc-austria.org.
Since Albania is merely a prospective candidate country, it can only use funds from the first two components.
A total of €594.4 million has been earmarked for Albania for the period 2007 – 2013. The lion’s share
(€528.3 million) has been earmarked for component 1. €66.1 million has been earmarked for component 2.
Details of the two applicable IPA components:
Component 1: Support for transition and institution-building
The aim is to develop a country’s institutional infrastructure (e.g. create an effective public administration)
and set up structures for monitoring EU technical standards, environmental standards, transport regulations,
working conditions, food safety, consumer protection and testing and certification institutes.
How companies can participate
The programme is basically aimed at the administrations of EU accession candidates. Funds are allocated
locally on a decentralized basis by Delegations of the European Union following scrutiny by the
EU. Companies can benefit from IPA support indirectly through the granting of orders for services, sup-
10 11

plies (IT equipment, laboratory equipment, etc.) or works on the basis of open calls for proposals for IPA
support.
Examples of orders for institution-building
• technical studies and preliminary work on IT systems and solutions;
• seminars and workshops on International Accounting Standards for officials, professional associations
and universities;
• preparation of information material in the country’s language on CE marking for products;
• development of software systems (e.g. for public water management);
• training of municipal waste management experts;
• supply of laboratory equipment for veterinary and food testing;
• supply of hardware and software for ministries, security agencies, health services, financial administrations
(e.g. waste management information systems).
Component 2: Cross-border cooperation
There are plans for cross-border projects with neighbouring countries, including, for instance, enhancing
regional integration (by improving economic structures, transport networks and infrastructures), reducing
environmental pollution, improving education and the labour market, economic cooperation, social and
cultural exchanges, strengthening regional identities.
How companies can participate
As in the case of component 1, by providing services, supplies and works on the basis of open calls for
proposals.
Submitting applications, application deadlines
Calls for proposals take place continuously. Calls for proposals and information about making applications
are published on the EuropeAid website, and they are also published on the websites of the Delegations
of the European Union to the beneficiary countries.
Link to EuropeAid
https://webgate.ec.europa.eu/europeaid/onlineservices/index.cfm?ADSSChck=1264761231660&do=
publi.welcome
Link to the Delegation of the European Union to Albania: http://www.delalb.ec.europa.eu/.
Government subsidies and support in Albania
• An act regulating foreign investment has been in force since 1994. Under this act, investors can invest
in any area of the economy and can own up to 100 per cent of a company.
• Since 2005, an act governing the manufacturing and services sector has been in force that regulates the
state subsidies system.
• The agricultural and fishing sectors are the only sectors excluded from subsidies.
• Up to 100 per cent of the VAT on machinery and equipment can be refunded if it is used for a business
activity and taxable revenues are generated.
Subsidized leasing
• Investors can lease state-owned land and buildings at below normal market prices.
• In the manufacturing sector, the discount will depend on the amount of the investment and the number
of new jobs created. Lease instalments will be reduced by between 5 and 50 per cent.
Investment support in the tourism industry
• The so-called ‘favoured persons’ named by the Ministry of Tourism, Culture, Youth and Sports have been
receiving special investment support since 1993.
• Investors granted this status are exempted from customs and excise duties on imported investment
goods if they serve the construction, renovation or enlargement of hotels, motels or vacation complexes
(the same applies to restaurants, shops, sports centres and thermal spas).
• Tax exemptions apply for five years from the time the investment is completed.
• Profit tax is reduced by 50 per cent for the subsequent five years.
Investment incentives in the energy sector
• Exemption from duty on investments in plant and imported machinery for generating electricity with a
capacity of over 5 MW fired by liquid or solid fuels.
• Refund of customs and excise duties on imported fuels used in the generation of electricity.
Further information
Contact at the Raiffeisen Network Bank: International Desk
AIDA Albanian Investment
Development Agency
Telefon: +355 (0) 42251001
E-Mail: info@aida.gov.al
Internet: www.aida.gov.al
Steuerbegünstigungen / Leasing
General Tax Department
Telefon: +355 / 4 / 227 68 00
E-Mail: artur.papajani@tatime.gov.al
Internet: www.tatime.gov.al
Investitionsanreize im Energiesektor
General Department of Customs
E-Mail: zvdrejtoradministrativ@dogana.gov.al
Internet: www.dogana.gov.al/
Investitionsbegünstigungen im Tourismussektor
Ministry of Tourism, Culture, Youth and Sports
Telefon: +355 / 4 / 2222 508
E-Mail: informacion@mtkrs.gov.al
Internet: www.mtkrs.gov.al
Tax concessions
12 13

7. Risk Mitigation and Finance
Guarding against investment and
export risks abroad
aws (Austria Wirtschafts Service GmbH = the federal government’s promotion agency)
aws provides guarantees to protect Austrian companies against financial risks arising from their equity
investments abroad within the scope of Ost-West-Fonds (East-West Fund) guarantees.
Two kinds of protection are available: the direct guarantee and the finance guarantee (with or without risk
sharing).
Finance Guarantee
An aws finance guarantee safeguards the bank by providing protection against the investor’s financial risk
(loan loss caused by the Austrian company’s insolvency). A finance guarantee covers up to 80 per cent
of the loan.
Austrian Company
Loan of €70
Finance Guarantee
for
80% of Loan,
i.e. €56.
The Direct Guarantee
An aws direct guarantee provides protection against the possible failure (insolvency or similar circumstances)
of an equity investment project. aws undertakes to provide a specific capital sum up to the maximum
guaranteed amount.
Investment of €100
BANK
Austria
Abroad
Austrian Company
Direct Guarantee of €50
Finance guarantee
to provide cover against credit risk
Investment Target
Investment of €100
Austria
Chart 2: Finance Guarantee Process
Direct guarantee
to cover project risk
Abroad
In the case of large enterprises, aws guarantees up to one third of a project’s value. The guarantee will cost
SMEs from 0.3 per cent of the guaranteed outstanding loan amount per half year. In the case of large
enterprises, the guarantee fee will be set in line with the market.
Finance Guarantee with Risk Sharing or Combination of Direct Guarantee and Finance
Guarantee
Investment Target
Chart 1: Direct Guarantee Process
aws guarantees up to 50 per cent of the amount invested should a project in another country fail. The guarantee
will cost SMEs 0.5 per cent of the guaranteed outstanding loan amount per half year.
In the case of large enterprises, the maximum guarantee is one third of the value of the project. The guarantee
fee will be set in line with the market.
It is possible to supplement a finance guarantee with protection against the financial risk associated with an
equity investment project in another country (finance guarantee with risk sharing). If the equity investment
project fails, aws takes on the role of financier, offering the investor a cheaper form of finance (soft
loan). Alternatively, it may offer the investor a settlement on a present value basis to allow early repayment
of the loan. It is important to note that aws will only agree to risk sharing if it is ensured that the Austrian
parent company is not in a position to deliberately make the equity investment fail (e.g. by charging excessively
high internal prices).
14
15

Austrian Company
Risk Sharing
OeKB-Exportservice (www.exportservice.at) or your primary banking provider can tell you which form of
guarantee is best for you.
Investment of €100
Loan of €70
BANK
Finance Guarantee
for 80%
of Loan
Finance Guarantee with Risk Sharing
to cover the credit risk and project risk
Austria
Abroad
OeKB’s export financing scheme offers access to funds to pay for exports and equity investments
abroad. This export financing scheme is available to Austrian and foreign commercial banks acting as the
source of funds and is offered to companies via those banks within the scope of their export transactions
and investments abroad.
The prerequisites for this form of financing are:
• a federal guarantee under the Ausfuhrfördergesetz (AFFG: Export Financing Promotion Act); or
• the assumption of liability by a credit insurer within the meaning of AFFG; and
• an aws (Austria Wirtschaftsservice GmbH) guarantee; or
• the assumption of liability by an international organization within the meaning of AFFG; and
that funding the underlying supplies/services will directly or indirectly help improve Austria’s current
account or is in Austria’s interest.
Investment Target
Chart 3: Finance Guarantee with Risk Sharing Process
The guarantee will cost SMEs 0.3 per cent of the guaranteed outstanding loan amount per half year plus
another 0.2 per cent per half year for risk sharing. In the case of large enterprises, the guarantee fee will
be set in line with the market.
Link: www.awsg.at
Low-interest finance, credit for internationalization projects:
OeKB (Oesterreichische Kontrollbank AG)
Good risk management and attractive sources of funds are essential if companies are to achieve sustainable
success as exporters and when investing abroad. OeKB offers federal export guarantees and OeKB
funding through a company’s primary banking provider, in this way providing instruments that strengthen
Austrian companies and their partners in the global competitive environment.
By issuing and processing export guarantees, OeKB thus acts as the Republic of Austria’s export credit
agency (ECA).
Export guarantees protect companies against default risks (whether caused by economic or political
events) when exporting abroad, and export guarantees provide protection against political risks when
investing abroad.
In addition, federal export guarantees provide attractive access to funds to pay for export and investment
transactions.
Export guarantees are available to any large, medium-sized or small enterprise if the guaranteed transactions
help improve Austria’s current account or are in Austria’s interest.
ERP Fund
The ERP Fund is a fund with a separate legal personality that has been affiliated with aws (Austria
Wirtschaftsservice) since 2002.
Low-interest advances with grace periods of several years are available within the scope of ERP loans:
The ERP Internationalization Programme for Direct Investments Abroad
• Target group: Austrian SMEs, large enterprises within the de minimis limits (present value of loan not
more than €200,000 within 3 years).
• Support for: equity and other investments that will improve the applicant’s strategic position.
• Equity and other investments in the following countries: Albania, Algeria, Argentina, Bosnia and
Hercegovina, Brazil, China, Croatia, Egypt, India, Indonesia, Iran, Korea, Libya, Malaysia, Morocco,
Macedonia, Mexico, Montenegro, Pakistan, Russia, Saudi Arabia, Serbia, Sri Lanka, Thailand, Tunisia,
Turkey, the Ukraine.
• Terms and conditions of ERP loans
– Maximum loan: €7.5 million
– Duration: 6 years
– Period of utilization: 0.5 years
– Grace period: 2 – 3 years, interest rate of 0.5% p.a. (fixed)
– Redemption period: 3 – 4 years, interest rate of 1.50% p.a. (fixed)
16 17

8. Payment and Account Services at
Raiffeisen Bank Sh. a.
– In a number of programmes, longer grace periods and longer redemption periods are also on offer:
sunrise industries within the technology programme, regional programme with a longer duration.
– Interest and redemptions are recorded on an accrual basis.
– Processing fee: 0.9% of the ERP loan.
– In addition to these costs, there will also be the guaranteeing bank’s guarantee fee.
Guarantee
Trust Money
• Projects eligible for support
– investments in:
– manufacturing facilities
– setting up subsidiaries
– acquisition of a qualifying holding (at least 25%)
• Costs that can be subsidized
– capital contributions
– shareholders’/members’/partners’ loans
– cost of acquiring an equity investment
– costs directly associated with investments
ERP Loan
Austrian Company
BANK
Loan Agreement
The KfW Banking Group (Kreditanstalt für Wiederaufbau, Frankfurt, Germany)
KfW-Bank offers subsidized, fixed-rate loans to pay for investments carried out abroad in connection with
internationalization projects of German companies or their subsidiaries or joint ventures with German
partners (German stake > 25%). They can be obtained through partner banks (e.g. RZB). The following
programmes come into question in connection with internationalization projects: Corporate Loans, the KfW
Environmental Programme, KfW Capital for Jobs and Investment (all three programmes can be combined).
Essentially, any investment can be financed (e.g. corporate acquisitions, investments in plant, machinery,
land and buildings).
Link: www.kfw-foerderbank.de/
Chart 4: ERP Loan Process
8.1. Cash management products
Account Services
Local Currency
Foreign Currencies
(LCY) LCY Deposits (FCY) FCY Deposits
Residents 3 3 3 3
Non-residents 3 3 3 3
Interest on credit balances 3 3 3 3
Overdrafts 3 3
Cash Management: Local Products and Services
Payments/Collections
• Domestic payments LCY
• Domestic payments FCY
• Foreign payments FCY*
• MT101
• Salary Payment solutions
• Direct Debit
(Utility payments only; within the Bank)
• Standing orders
(between two retail accounts within the Bank)
• Cheques
• Cheque collection
• Traveller’s cheques
• USD denominated Bank Checks
drawn on American Banks
• Cash payments / withdrawals LCY
• Cash payments / withdrawals FCY
• Purchase & Sales of FCY
• Visa Electron Debit Card
• Money Gram
* however, subject to regulations of Bank of Albania
Cash Management: Group Products and Services
• Cash Management International (CMI)
• CMI@Web
• International Account Reporting
• International Disbursement Service*
• Payments within RBAL & RBKO standardization
• Cross-border Margin Pooling
• Intra-group Payments
Electronic Banking
• MultiCash
Liquidity Management
• Account sweeping
• Cash Collection
• Margin pooling
• Forex
• Central Conversion Solution
• SWIFT for corporates (SCORE)
18 19

8.2. Local & Foreign Exchange Regulations
Current Accounts
8.3. Clearing Mechanisms
Settlement
• Local and foreign corporate customers are allowed to maintain domestic and foreign currency accounts
in local banks.
Domestic Payments
• There are no limitations with regard to domestic payments, either in LCY or FCY.
• Bank requires the source of revenues and reasonable justification for the domestic transfer.
Foreign Payments
• Description:
• Type,
Transaction value,
Settlement cycle:
All commercial banks hold clearing accounts with the Bank of Albania.
Payments above ALL 1.5 million are performed through AIPS (Albanian
Interbank Payments System), a RTGS system, which is directly connected to
SWIFT Y-COPY Service. Payments below ALL 1.5 million are performed through
AECH (Automated Electronic Clearing House).
• In case of commercial payments, companies have to present to the bank at the time of transfer supporting
documents such as invoices, pro-forma invoices, contracts, customs clearance acts, a decision
taken from Management Board, for fund transfers etc. In case of advance payments, a pro-forma invoice
must be handed to the bank, while the customs clearance act should be presented at the bank within
3 months from the day of the transfer.
• Transfer of capital outside Albania can also be performed with the presentation of some documents
including a certificate issued from the Tax Office declaring the company is free from any liabilities
towards the government.
• There are no restrictions with regard to incoming foreign payments.
• Individuals can transfer freely without any limit restriction but they Bank requires a reasonable justification
document for the transaction.
Cash Payments / Withdrawals
• Residents and non-residents can perform and receive cash payments in local and foreign currency
(Foreign payment orders are subject to the regulations of the Bank of Albania).
• Bank requires advance notice for large amounts and commissions may apply.
• Bank requires the source of revenues and reasonable justification for the cash transaction.
* however, rwstrictions due to local regulations
20 21

9. Raiffeisen Bank Sh. a.
10. Your International Business
Specialists at Raiffeisen Bank Sh. a.
and the Global Raiffeisen Network
Assets, €m 2,300
Branches 105
Staff 1,400
Raiffeisen Bank is the largest bank in the country, holding the number one position in all major key performance
indicators. Raiffeisen has been represented in the Albanian market since 2004 by Raiffeisen Bank
Sh.a., which was founded in 1992 as Banka e Kursimeve i Shqipërisë. The bank‘s loan portfolio was more
than € 1 billion at the end of 2011, while deposits at the same period amounted to € 2 billion.
Raiffeisen Bank offers the full range of banking products and services in the key business sectors in which
it operates, namely private individuals, micro, small and corporate business as well as affluent customers.
Raiffeisen has the widest branch network in Albania with 105 locations; more than 1,400 employees serve
over 690,000 customers.
Established in 2006, subsidiary Raiffeisen Leasing Sh.a. successfully defended its leading market position
during 2011. In 2011, the bank‘s subsidiary Raiffeisen Pensions was licensed to investment funds and was
renamed Raiffeisen Invest. Raiffeisen Invest is the first such company in Albania, and Raiffeisen Prestigj the
first investment fund in the market.
Raiffeisen Bank was named „Best Bank“ by Euromoney in 2011 and “Best Foreign Bank” by EMEA Finance.
Raiffeisen Bank Sh.a.
European Trade Center
Bulevardi Bajram Curri, Tirana
Phone: +355-4-222 669
Fax: +355-4-275 599
www.raiffeisen.al
Shareholder structure:
indirect Raiffeisen Bank International 100%
Your specialist at Raiffeisen Bank Sh. a.
Elona Shuperka
elona.shuperka@raiffeisen.al
Phone: +355 / 4 / 2381 444
Your international business specialists
Raiffeisen Bank International AG
Herwig Haidn
herwig.haidn@rbinternational.com
Phone: +43 / 1 / 717 07 – 1574
Raiffeisen Bank International AG
Rudolf Lercher
rudolf.lercher@rbinternational.com
Phone: +43 / 1 / 717 07 – 3537
Raiffeisenlandesbank NÖ-Wien AG
Ivica Bozan
ivica.bozan@raiffeisenbank.at
Tel. +43-5-1700-92495
Thomas Stumbauer
thomas.stumbauer@raiffeisenbank.at
Tel: +43-5-1700-93308
Raiffeisen-Landesbank Steiermark AG
Franz Rogi
franz.rogi@rlb-stmk.raiffeisen.at
Phone: +43 / 316 / 4002 – 7110
Günther Geieregger
guenther.geieregger@rlb-stmk.raiffeisen.at
Phone: +43 / 316 / 4002 – 7170
22 23

Notes
Raiffeisenlandesbank Oberösterreich AG
Helmut Zeindlinger
zeindlinger@rlbooe.at
Phone: +43 / 732 / 6596 – 3113
Artem Snegirev
snegirev@rlbooe.at
Phone: +43 / 732 / 6596 – 3161
Raiffeisenverband Salzburg
Friedrich Buchmüller
friedrich.buchmueller@rvs.at
Phone: +43 / 662 / 8886 – 3860
Raiffeisen-Landesbank Tirol AG
Andrea Zankl
andrea.zankl@rlb-tirol.at
Phone: +43 / 512 / 5305 – 2230
Raiffeisenlandesbank Vorarlberg
Alexandra Welte
alexandra.welte@raiba.at
Tel.: +43 / 5574 / 405 - 528
Raiffeisenlandesbank Burgenland
Wilhelm Schedl
wilhelm.schedl@raiffeisen-burgenland.at
Phone: +43 / 2682 / 691 – 605
Raiffeisenlandesbank Kärnten
Michael Stegmüller
michael.stegmueller@rbgk.raiffeisen.at
Phone: +43 / 463 / 99300 – 2280
Herbert Schöffmann
herbert.schoeffmann@rbgk.raiffeisen.at
Phone: +43 / 463 / 99300 – 2269
24 25

Notes
Notes
26 27

Received from:
28