PM Rama states government will fight informality in companies’ balance sheets

Starting from next year, the Albanian government will announce a fight against second balance sheets.

In his speech during the Second Conference of the Albanian Association of Banks, Prime Minister Edi Rama said that his government will not tolerate anymore the practice of two different of financial statements, one declared to banks and one declared to the tax authority.

According to him, informality continues to be extensive, even among the most important companies in the country.

“Starting from next year the Albanian state, the Albanian government, our tax administration will not recognize any balances of companies that are incompatible with the balances available to banks. The history of two balances, involving typical cases when banks are shown by companies how much they have, and when the state is shown in what a bad position they are, will end by January 2018. It has been two years since we have made it known and therefore all companies – of course, the target is big companies, – will have to be very clear,” PM Rama said.

In addition to seeking the co-operation of banks in the fight against informality, the prime minister did not miss the opportunity to promote the “1 billion euro platform”.

According to him, it was built as a platform for cooperation between private companies and banks.

At the moment, however, banks are showing reservations in expressing any explicit enthusiasm about this platform. The Chair of the Albanian Association of Banks Periklis Drougkas said that the main concerns for the banking industry are problems related to property registration, corruption, especially in justice, informality and high fees of the bailiff service.

“We are happy with the reforms so far, but the banking system wants to see more in some ways. Specifically, in the property registration system, the ownership status of assets should be clarified and this is done to offer guarantees. Guarantying the implementation of judicial decisions to strengthen trust in the rule of law, increase the integrity of tax administration practices, the taxation system should adopt the best international standards,” Drougkas said.

Following the improvements in the collateral execution deadlines and bankruptcy law, a topic of contention has become the high bailiff charges that have been opposed by the banking system and the International Monetary Fund.

SCAN

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