Bank credit in the macroeconomic plan as it was seen from the treatment, loans and guarantees for investments are among the most important and profitable activities for the bank, but in the meantime they are also the most risky activities for them. This can be said especially for our country, which rightly expects economic recovery, primarily from investment loans and foreign investors. Banks must be very careful so that after a few years, our banking system is not faced with a collapse, as a result of insolvency to foreign banks, to which bank guarantees for investments will be issued or will be take credit.
More specifically, regarding the opportunities of our banks to lend and guarantee investments in priority sectors of the economy, we would say:
The financial situation of our commercial banks (mainly those with still state capital) is such that they not only can not lend in foreign currency objects that the country needs, but also can not guarantee objects that pass p. sh. the amount of 1,000,000 U.S.D. as their capitals are insufficient. In the face of this situation, there will be a need that in order to be eligible by foreign banks or financial institutions, guarantees for relatively significant amounts will have to be issued on behalf of several Albanian banks (where different banks will take part).
To financial liability for the guarantee issued). But even this at the moment seems really impossible for our banks. Priority sectors of the country’s development have not yet been specified and based on both serious and complex national studies. Evaluating the effectiveness of investments in general is still not done based on modern methods. Investments on behalf of the government, for which the State Budget is to be invested, are guaranteed on behalf of the government and administered by commercial banks.
For this reason it would be good to:
The Bank of Albania, for the loans that will be taken on behalf of the government, within its legal competencies, to sanction its modern and computerized method of analysis, before evaluating the effectiveness of investments, taking into account not only the commercial effectiveness, but on all economic, ie national;
This is a very important criterion when it comes to financial impossibility or guarantee of all projects that will be submitted. We can talk here about a selection and opening of the green light for those objects that are really a priority and that should be included in the annual amounts that will be covered for our country by various international financial organizations. Since it is about co-guarantee, why not co-financing from our banks, a forum can function which objectively and responsibly helps the government, but within the independence of the banking system and without receiving “orders” to express the opinions and attitudes of the banking system on the problems, opportunities, ways, policies, financing and guarantee of investments in Albania.
Regarding loans on behalf of the government, ie that will be guaranteed and repaid from the budget, it would be good for them to be handled and analyzed competently and very carefully by the Ministry of Finance, and the government as a whole.
For this, an important role should be played by the Bank of Albania, which should be a serious and qualified opposition in the government, when discussing the granting of authorization for the issuance of guarantees or obtaining credit. It is about getting a loan or a guarantee, only after careful analysis, in accordance with government programs; to select the facilities that will be financed according to the order of priorities. This makes it possible for the budget to accurately recognize the liabilities in years in advance and not to assume liabilities beyond its means.
In determining the priority branches and sectors of the country’s development, the banking sector can and should provide its assistance. This is primarily related to the new concept that should be created to all, that investments require money that moves and is guaranteed through banks. . Therefore, banks should be included from the beginning in the negotiations for the realization of an investment and not only when contracts have been signed, without first conducting a thorough analysis of the commercial and national effectiveness of the project required to be financed or guaranteed. This is the only way to work out to avoid big losses after a few years. Therefore, the preparation and qualification of banking specialists for the problems addressed above, should be done with priority for the very importance of the problem, the evaluation of the facilities for which it will be invested, or when a guarantor is issued by the banks.
