Download Bosmip 4_Tefta Demeti, Ministry of Economy, Trade and

Ministry of Economy, Trade & Energy in
Albania
3 February 2012
Economic Faculty, Tirana/Albania
Macro – Economic Indicators in Albania,
Year 2008-2010
 Economic growth: 3,9% compare 3,3% in 09 and 7,9 in 08;
 GDP per capita: 3900 USD ;
 Inflation: 3,6% compare 3,4% in 2008;
 Unemployment: 13,49% compare 12,7% in 2008;
 Contribution of private sector : 82% of GDP & 82% of






Employment
Remitances:690 mln Euro, decrease by 27.5% compare 2008;
or 7% of GDP compare 10.9% of GDP in 2008
Contribution of SME sector : 73% of GDP & 71% of
Employment
99% of private sector is SME.
FDI, 826 Mln Euro or 9,4% of GDP from 6,7% in 2008
Exports 1,1 Miliard Euro or 12,2% of GDP increased 56%
Credit for private sector 39,6% of GDP compare 37,1% of GDP
in 2008
2
ACTIVE ENTERPRISES IN ALBANIA,
year 2010
 Total number of active
enterprises: 100,687
 26,4% are lead from female
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
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
Micro (1-9) – 95.7 %
Small (10-49) – 3 ,5%
Medium (50-249) – 0.7 %
Large (+250) – 0.1 %
Medium,
0.7%
Large,
0.1%
Small,
3.5%
62% are self-employed
New enterprises 2011 12,706
 5% less active companies compare
2009
 3,1% increased the number of
employee compare 2009
Micro,
95.7 %
ACTIVE ENTERPRISES DURING THE YEARS
120000
104,750
106,477
y 2008
y 2009
100000
100,687
87,484
77,814
80000
64,710
60000
40000
20000
0
y 2005
y 2006
y 2007
y 2010
SPREAD BY ECONOMIC SECTORS -2010
 The spread of SMEs







according to economic
sector:
Trade – 44.4%
Industry – 9.9%
Hotels, coffees,
restaurants – 15.6%
Transport and
communication – 10.3%
Other services – 13.9%
Construction – 4.2%
Agriculture and fishing –
1.7%
5
GEOGRAFICAL SPREAD OF ACTIVE ENTERPRISES
6
ASSESSMENT OF SME POLICY REFORMS

Ease of doing business in Albania, according to Doing Business
2012, Albania is ranked 82 out of 183 countries. (86 in 2008, 136 in 2007
year );
 National Register Center as one stop shop since Sept.2007
 National licenses Center as one stop shop since June 2009
 Reduction of time and cost for starting a new business. Now it is
needed 5 steps ( 10 steps ) and 5 days ( 36 days);
 E-Government: ( Public procurement, Business Registration, Tax
Administration and Licensing);
 Online service in tax declaration and payment; Large tax payers can
declare and pay electronically VAT, Income tax, Social and health
insurance tax and annual declaration of corporate tax.
www.tatime.gov.al;
 Online public procurements operational since beginning of 2009;
 Information technology : e-signature, e-commerce. During 20072010 period there is an increase of internet users, 15,3%, 18%, 32% &
51% ( source ITU);
7
FISCAL REFORMS
 The reduction of the corporate income tax : from 30% in 1999 to 25%,
in 2004, 23% in 2005, 20% in 2006-2007 and 10% since January
2008. Also, personal income tax is 10%;
 In 2009 was ratified the law for the right of compensation to later tax
obligations and contributions of social health insurance with the
amount of VAT to be refunded;
 Postpone of the VAT payment on machinery, equipment and raw
materials, which in 2008 was over 12 months depending on the
investment cycle and the start of production;
 Social security contribution from May 2009 is reduced to the level of
15%.
DOING BUSINESS IN ALBANIA
Doing Business
Doing Business
Doing Business
Doing Business
Doing Business
Doing Business
2011
2010
2009
2008
2007
2006
Ease of Doing
Business
82
82
86
135
120
117
Starting a
Business
45
46
67
130
121
108
173
105
170
160
161
131
Employing
Workers
170
_
108
109
113
127
Registering
Property
70
70
62
56
76
66
15
15
12
61
48
41
15
15
14
168
162
136
149
138
143
125
125
132
Trading Across
Borders
75
66
77
73
101
100
Enforcing
Contracts
89
91
88
88
99
113
Closing a
Business
183
183
181
181
89
9
Dealing with
Construction
Permits
Getting Credit
Protecting
Investors
Paying Taxes
73
The credit according the years and sectors.
% of total credit
33.6
35.0
30.0
23.7
25.0
19.8
2007
20.0
2008
13.7
15.0
2009
2010
10.0
4.4
5.0
3.3
1.5
0.0
Bujqesi
Industri
Ndertimi
Tregtia
Hotelet
&res
Transporti
sherbime
1. Italian program for SME support
with soft credit line
The program aims to foster the economical and social
growth of Albania,
supporting the access of local SMEs to the credit system
and enhancing the formal economy.
The Program includes:
 A Credit Line (25 million Euro) in favor of
Albanian SMEs;
 A Guarantee Fund (2,5 million Euro) to support
the SMEs access to the credit system;
Credit Line
A 25 million Euro soft loan to finance the purchase, by Albanian
SMEs, of goods and services of Italian origin, including:
 Raw materials
 Equipment
 Technologies and relevant TA
 Maintenance and spare parts
 Industrial Licenses
A maximum of 30% of the financing to each project could cover
local costs.
Credit Line - Eligibility Criteria
All the Albanian SMEs and related projects, responding to the
following criteria, can access the Credit Line:
SMEs legally registered in Albania
SMEs owned for at least 51% by Albanian citizens
SMEs having an annual turnover not higher than 5 million
Euro
SMEs having not more than 250 employees
Projects with a total requested loan amount ranging
between 50,000.00 Euro and 500,000.00 Euro
Credit Line - Priority Criteria
SMEs considered as a priority:
 Manufacturing companies
 Export Oriented SMEs (export at least 50% of total sales)
 New SMEs created by Albanian citizens resident in Italy
 SMEs part of clusters or industrial zones/parks
Credit Line - Priority Criteria
Priority Projects /Sectors:
Agriculture sector and agro food processing sector
Renewable energies and energy efficiency/conservation
projects
Low environmental impact and pollution abatement projects
Projects creating new job opportunities
Projects localized in less developed area of the country (out
of Tirana-Durres area)
Credit Line - Lending conditions
Applied Interest Rates:
 Up to 5.5% annual interest rate for loans in EURO
 Up to 8.5% annual interest rate for loans in LEK
Repayment period: From 3 to 8 years.
Grace Period (only interests paid): From 1 to 2 years.
Credit Line - Small Projects
 A maximum of 10% of the total amount of the Credit line
could be used to finance start-up projects with a budget
between 15,000.00 and 50,000.00 Euro;
 Small Projects will benefit of 4 years repayment period
including 2 years grace period.
Implementation of credit line for SME
 During the period
2009- Jan 2012 are
financed 64 SME
companies and
distributed 14,3 mio
Euro.
 20 projects are in
the export field with
5 mio Euro
Credit Line – Participating Banks
Banca Intesa Sanpaolo - Agent Bank of the Program
 Raiffeisen Bank 7
2,3 mio Euro
 National Commercial Bank (BKT)
28: 5,8 mio Euro
 International Commercial Bank (ICB) 11: 1,7 mio Euro
 Tirana Bank
2
0,5 mio Euro
 CREDINS
6
1,4 mio Euro
 Banca Italiana di Sviluppo (BIS)
 National Bank of Greece
0
6 : 1,8 mio Euro
2. Agreement of Cooperation 2010-2012,
Italian credit line second phase
• Italo-Albanian Agreement of Cooperation for the
period 2010-2012, signed on 12 April 2010 provides for
financial support of 51 mil (28 Mil. Million as soft
loans, loans 20 mil as Swap and 3Mil.Euro as a gift) in
order to support the three main sectors:
 Financing Program for the Development of private
sector with additional funds 15 Mio. EURO;
 Agriculture and land management and 10 Mio. EURO;
 28.1 Mio. EURO social development
Purpose: financial and non-financial instruments to
facilitate access to credit to SMEs.
Export according the years
1600
1400
1369
1200
1154
1000
917
800
780
785
600
400
200
0
y 2007
y 2008
y 2009
y 2010
y 2011
3. Competitiveness Fund,
“Cost share Grant scheeme”
Competitiveness Fund, created by DCM no. 112 dated 21/02/2007, a fund of 25
million lek / year, estimated in 2007-2010 successful. 98 projects were
approved, of which 18 run by women (about 18%).
Geographical Distribution of grants
Grant Scheme by Cost Sharing used for:
Grant funds are addressed in response to the demands and needs of
exporting companies, but also in respect of the requirements and
procedures of the project and mainly based on:
- Establishment of "Quality Management Systems" ISO standards.
- "Certification" of the product according to international market
requirements.
- Conducting business missions from Albanian exporters
- Conducting technology expertise to improve
- Realization of market research
- Participation in business activities as visitors or exhibitors
- Promotions of companies, etc..
Cost share Grant scheeme, 2010-2012
By decision no. 112 dated 17.02.2010 decided Creating Competitive Fund for 3year period 2010, 2011, 2012 with a value of 28 million leks / each year.
The main objective of this scheme is to support the Albanian exporting
business in its efforts to promote and increase exports. specifically:
 To provide financial support (funding) for exporters, sharing with them in
50% of project costs (up to 1 million leks), relating to initiatives for
introduction in new markets or consolidating existing markets, meeting
quality standards the production processes and product, the business
performance of missions, promoting activities, etc.
 To support and intensify what the company is able to do with its capacity, but
adding "grant funds" company sources
4. Credit Guarantee Fund for export
Through Decision 489, dated 25.07.2007. This fund
is part of the state issues and guarantees that the cap
is 200 million leks (or about 1.5 million Euro) and
will continue to be used for a period of 6 years.
Guarantees are given for two businesses in which a
woman is.
5. Innovation Fund
 The innovation fund is created by CMD No. 667, dt. 28.09.2011 for the 4
years. The grant by 12 mil. Lek/year.
 Innovation Fund to provide assistance in the form of direct subsidies,
micro, small and medium-sized, up to 400,000 lek. Depending on the
assessment for the project submitted by the applicant. The scheme
covers from 30% to 50% of eligible costs of the project.
Innovation fund can use for:
a)Audit of innovation and technology, which aims to enable the applicant
companies to assess their current positions and opportunities for their
innovation profile and/or technological positioning, according to a
competitive structure development;
b) the internationalization of technology, which aims to enable enterprises to
identify the applicant and inspect seeking to adapt technology
Selection Criteria
The selection criteria of the companies are:
a)businesses are classified as micro, small or medium, according to Law
No. 8957, dated 17.10.2002, "On small and medium enterprises", as
amended.
b) Have the headquarter and main factories manufacturing within the
territory of the Republic of Albania.
c) Produce in Albania products and/or services which are traded within
and/or abroad.
d) Propose and develop activities, in accordance with the policy of the
Innovation Fund.
Company need
 need to be improved technologically, for activities
proposed;
 an estimate for the expected business benefits from improving, the
basis of which will develop proposed activities;
 a business plan or a project which has integrated the proposed activity.
 Argue that assistance through the Innovation Fund will help increase
economic activity beneficial to the subject.
 Have skilled staff to implement appropriate and timely activities
proposed.
 are able to finance 100% of all project costs, proposed before the end of
it.
Implementation Agency is AIDA www.aida.gov.al
.
Thank you!
Tefta Demeti,
Head of SME & Business Policy Unit
MINISTRY OF ECONOMY, TRADE & ENERGY
E mail: [email protected]