PRESS RELEASE
Meeting on Presenting Bank of Albania Draft Strategy on European Integration

A meeting on presenting the BoA draft - strategy for European integration took place today at the Bank of Albania. In the opening speech of the BoA Governor, Mr. Shkelqim Cani stated that "the Bank of Albania is committed to the process of economic-financial reform in the framework of Stability- Association Agreement with the European Union as it is part of Albanian team of negotiations headed by Ministry of European Integration. Also, in co-operation with the Ministry of Finance, the Bank of Albania is committed to meet financial reforms in terms of the memorandum of economic-financial policies with the IMF".

According to Mr. Cani, capital account liberalisation is inevitable and it is the task of this round table to set forth further and concrete steps and to prepare an optimal process of liberalisation, so as to provide the desired benefits.

Albania is committed to liberalize its capital account and it has agreed to do so within a certain time limit. In the Working Group Report on Albania's accession to World Trade Organization, removal of capital controls is one of the horizontal commitments. The report states that: the Bank of Albania reserves the right to maintain capital controls, which will apply on national treatment basis. The regime currently in place will be removed no latter than 2010'. At the same time Albania is preparing to sign the Stability and Association Agreement, which is the first step towards integration in the EU. This agreement will impose on Albania certain conditions regarding the sequencing of CAL and it will set a time limit after which the capital account of Albania will be fully liberalized.

It is much known the fact that in the way to European integration, the free movement of capitals is one of the membership conditions. The EU has developed a long and gradual process of financial integration of all countries, managing at least for the countries to be equal in relationships with each other.

In today's round table the BoA specialists presented the current level of capital movement rules and situation, using, to this end, a standard document of EU on "Applicable rules for capital movements". This document highlights the current situation. In the meantime, the discussants and presenters spoke about:

- Bank of Albania commitment to liberalize capital account in the framework of WTO Agreements and the project of Stability Association with the EU;

- Positive and problematic points of liberalization;

- What is currently being done by the Bank of Albania;

- Tasks to be carried out in the future;

- Co-operation with other institutions;

- Making the public aware of problems and benefits of capital account liberalization.

The meeting concluded that following this round table, the more complete matrix of steps should be set up as soon as possible, with activities and responsible units that will operate in the process of capital account liberalization, in which the Bank of Albania will play its leading and managing role.