Finance Ministry, BoA join forces to fight informality among large companies
Large companies will be the focus of the next phase of Albania’s fight against informality.
In a joint statement to the media Minister of Finance and Economy Arben Ahmetaj and Governor of the Bank of Albania Gent Sejko announced a joint plan to reduce the level of economic informality, especially among large enterprises that still work with two different balance sheets.
Minister Ahmetaj requested the business cooperation in this process, emphasizing the stage of their self-correction.
“In 2015 we said that on January 1, 2018 we will have this direct measure, so that the bank will only accept declared balance sheets in tax offices. Meanwhile during this period we offered the right of self-correction without penalties, and all these are mitigating measures, are measures that help the business to be formalized. Informality is costly for them, it’s costly to the economy, it’s costly to the state budget,” Ahmetaj said.
While pointing out that informality undermines competition and is a hidden cost for the economy, Governor Sejko said that banks will now only accept balance sheets presented in the tax offices.
“Since banks have begun to apply this measure over the years, we do not anticipate that there will be any obstacle in the accreditation process, but it is in line with the call we have made to banks for a healthy lending, ie for a lending-oriented towards the potential sectors of the economy where there is less risk and where there is more potential. Borrowers will submit official financial statements, so they will not work with two standards.”
The high level of informality in the Albanian economy is now acknowledged by all financial institutions.
Meanwhile, the government has repeatedly taken actions against this phenomenon.
Its effects have been seen in the increase of the number of small business registered as well as in the number of employees declared.
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