Endemic corruption hampering foreign investors: State Dptm’s Investment Statement on Albania

The US State Department published on June 29th its latest statement of the investment climate in Albania for 2017.

The emphasis is mainly on endemic corruption and the urgent need for judicial reform.

“Despite the government’s stated desire to attract foreign direct investment, corruption in Albania is endemic, particularly in the judiciary, and sanctity of contract and respect for private property remain low. The implementation of the reform of the judicial system has recently begun, but the investment climate remains problematic and Albania is perceived as a difficult place to do business,” reads the report.

The report states that, despite that Albanian law does not make a distinction between domestic and foreign investors, treating them in the same way, it is high corruption, mainly in terms of public procurement, that prevents foreign investors from pouring their capital in Albania.

Only last year, a number of US companies complained that they were disqualified from bidding processes even though they had the best offer, and that the government favored local companies.

Reports on corruption in public procurement are quite common in Albania, writes the State Department.

The report underlines that the positive aspects that attract foreign investors in Albania are energy, infrastructure, transport and water supply.

The banking sector is considered well capitalized and with sufficient liquidity.

The report adds that banks in Albania, unlike its neighbors, has not suffered harsh blows from the global financial crisis.

Corruption is an ongoing problem in Albania, which undermines the rule of law and economic development.

The judicial reform is evaluated as the most positive development since the fall of communism.

The right to property is also considered as one of the key problems of doing business in the country.

The Immovable Property Registration Office (IPRO) is singled out as one of the most corrupt institutions in the country and the State Department urges investors to pursue legal practices only through a lawyer.

SCAN

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