PRESS RELEAE
Questions and answers at the Press Conference of 26 February 2014

Question-The Government is expected to adopt a draft that would definitely determine the relationships between banks and the tax authority on bad debt. Which loans will be tax deductible by banks to avoid conflicts between banks and the tax authority? How do you assess the situation?

Answer- It is a very important initiative and I avail myself of the opportunity to greet all those involved in it. I deem that this step is a very good omen for the Albanian economy. In the framework of the arrangement with the International Monetary Fund, we have agreed on two very important moves: writing off bad loans to clean up bank balance sheets and making relevant regulations between parties. We also expect improvement of the collateral execution processes but what is more important is the arrears clearance. The Bank of Albania deems that these very important moves will provide new stimulus, which is the best support to the Albanian economy during these times, including Albania's economic growth.

On 28 February, the International Monetary Fund is expected to adopt a loan arrangement with Albania, which is important news. Albania has already met all the conditions, so I believe it will pass successfully on the said date. Naturally, this opens the way to a World Bank agreement, which would provide not only monetary values but also strong support to all branches of the Albanian economy.