"The fall of the Euro, from criminal money", letter to international exporters: Your expertise is needed

The devaluation of the euro continues to damage the activity of exporters, and according to them, the drop of the currency is being affected by the flow of criminal money into the Albanian economy.

Export associations in a letter addressed to international financial institutions such as the IMF, the European Bank for Reconstruction and Development (EBRD), the World Bank, the Ministry of Finance and Economy and the Bank of Albania request the adoption of measures, as the effects of the devaluation of the euro will be felt among years.

"We would appreciate it positively if the strengthening of the national currency came from the strengthening of our economy due to increased productivity, increased competition, increased foreign direct investments and income from remittances.

But the large and temporary fluctuations that severely damage exporters and tourism seem to be affected by informal or criminal money in the Albanian economy, mainly in real estate and profitable businesses.

We estimate that these fluctuations will probably be felt even more in the following years, therefore we consider that it would be very valuable to join forces with your experts, for the promotion and facilitation of export policies, which include fiscal and monetary policies , but also the importance of reducing costs and fiscal burdens.

We remain fully hopeful that your institution will provide us with the required expertise, which is based on the fact that you have very long experiences from almost all member states".

According to exporters, the depreciation of the euro currency is about 20% and about 13% on an annual basis.

The exporter associations have raised the concern several times in the meetings held with the Ministry of Finance and the Bank of Albania about the deepening of the losses in their activities due to the high fall of the euro.

To help them, the government approved the Normative Act for the hardening of advance income tax payments until December 2023, and through an MFE order, the timely acceleration of VAT refund procedures was decided. Exporters raised concerns that these measures are not providing relief effects.

Full letter

Assistance is required for monetary and fiscal policies that mitigate shocks from exchange rates

 

       Directed by: Mrs. Stephanie Eble

Resident Representative for Albania-IMF
Regional Resident Representative based in Vienna
Martyrs of the Nation Boulevard
Twin Tower 1, Suite 3-2
1001 Tirana, Albania
       Mrs. Odile Renaud-Basso

        Tirana Resident Office-EBRD

Torre Drin Building, 4th Floor
Abdi Toptani Street
Tirana
Albania

       Mr. Emanuel Salinas

Country Manager-World Bank

Tirana, Albania

34 Ibrahim Rugova St.
Tirana, Albania

        For information: Mrs. Delina Ibrahimi

Minister of Finance and Economy

Martyrs of the Nation Boulevard, no. 3

Tirana

       Mr. Gent Sejko

Governor, Bank of Albania

Skënderbej Square, no. 1, Tirana

 

From: Unified Office of Export Associations

Dear managers of financial institutions,

First, allow us to express the positive evaluations of the community of Albanian Exporters, for your help in the first steps of the Albanian transition.

We greatly appreciate the fact that your institutions consider business associations as useful partners in the implementation of structural and sectoral reforms.

The export community today represents over 5,000 exporting companies, over 200,000 employees and has a contribution of nearly 23% to GDP.

Thanks to their growth and consolidation, exporters are one of the main pillars of increasing competitiveness and improving the trade balance and the current account balance.

We are aware that under the conditions of the application of the fluctuating exchange rate, we will be affected by external shocks. This situation has been felt more in recent years. The depreciation of the euro currency is about 20% and about 13% on an annual basis.

We would appreciate it positively if the strengthening of the national currency came from the strengthening of our economy due to increased productivity, increased competition, increased foreign direct investment and income from remittances.

But the large and temporary fluctuations that severely damage exporters and tourism seem to be affected by informal or criminal money in the Albanian economy, mainly in real estate and profitable businesses.

We estimate that these fluctuations will probably be felt even more in the following years, therefore we consider that it would be very valuable to join forces with your experts, for the promotion and facilitation of export policies, which include fiscal and monetary policies , but also the importance of reducing costs and fiscal burdens.

We remain fully hopeful that your institution will provide us with the required expertise, which is based on the fact that you have very long experiences from almost all member states.

Best wishes to you,

Unified Office of Export Associations