ALSE a big step forward for the financial market: Expert Meka

The licensing of the first private stock exchange is a very important step for the financial market in Albania. Elvin Meka, former director of Tirana Stock Exchange and an expert on financial markets, says that the operation of the stock exchange will radically change the country’s financial markets.

The capital market will bring a second pillar of development, as an alternative to the already consolidated banking market.

“”Obviously, this is a good and welcome news for the Albanian financial system. It should have been done long ago or better to say TSE shouldn’t have taken place, despite the fact that today we have a subject that has nothing to do with the state, but comes from an entirely private venture. This news is even better. I think that the challenge of this new private entity remains the same as in ’96 and in 2000, and this has to do with what will be the raw materials or products that will be offered, which will be marketed through this new subject,” Meka said.

The main challenge for the new stock exchange ALSE, according to Meka, will be the provision of sufficient products to be traded in.

He opines that, in the short term, development potentials are in corporate debt instruments and especially bonds.

The fact that some Albanian companies have launched debt securities emission represents a signal of interest for this form of borrowing.

Bonds can provide a number of advantages, both for issuers and buyers.

Through bonds, businesses can ensure long-term loans at more favorable terms.

Meanwhile, investors can take advantage of better returns compared with traditional financial investments.

The existence of a stock, on the other hand, makes bonds a liquid and tradable instrument at any time.

“What is possible to develop, based on the historical context of the development of products and markets? In the first place I would like to mention corporate bonds, a very similar product with bank loans, where big businesses are familiar with the mode of operation of the product”, Meka said.

According Meka, the lack of political to make the former TSE functional caused a great loss of time.

Meka stressed that if some experience was gained by the TSE, then Albania would have already established some basis in recognition of the capital market instruments inside the country.

Earlier this week, the Financial Supervisory Authority licensed Albanian Securities Exchange – ALSE, the first private capital market in Albania.

In the first year of the activity, operations are expected to focus mainly on trade in securities of the Albanian government, which is expected to pave the way then for the trading of business securities.

SCAN

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