Albania Monthly Report - April, 2016

USD $149.00
Albania Monthly Report - April, 2016


This report covers the key macroeconomic and financial releases as well as the political events from Albania for the period of April 11, 2016 – May 10, 2016.
IMF keeps Albanian 2016 economic growth forecast at 3.4%
Albanian c-bank cuts key rate further to 1.25%
China Everbright and Friedmann Pacific sign deal to acquire Tirana airport operator
Albania to build new national stadium in Tirana worth €50mn
Tirana court launches bankruptcy procedure against Albanian steel maker Kurum
Albanian government to renegotiate terms on TAP gas pipeline project
Albania to probe deals over power distribution company with Czech utility CEZ


Key points:
• Albania's CPI edges up 0.3% y/y in April
• Albania's economic outlook index drops 5.7pp q/q in Q1
• Q1 trade gap widens 16% y/y
• Albania's commercial bank loan portfolio down 1.8% y/y at end-March
• Growth of Albania's commercial bank deposits edges up to 0.9% y/y at end-March
• Albania's NPL ratio falls y/y to 18.9% at end-March, up 1.5pp q/q



Table of Contents

EXECUTIVE SUMMARY 3
MACROECONOMIC OVERVIEW 5
Albanian c-bank cuts key rate further to 1.25% 5
EC keeps 2016 GDP forecast for Albania at 3.2% 5
IMF keeps Albanian 2016 economic growth forecast at 3.4% 6
REAL SECTOR 6
1. GDP 6
Albania’s economy expands by 2.2% y/y in Q4 2015 6
2. Inflation 7
Albania's CPI edges up 0.3% y/y in April 7
3. Economic outlook 8
Albania's economic outlook index drops 5.7pp q/q in Q1 8
FISCAL SECTOR 9
Albania plans to reduce public debt below 45% of GDP 9
Albania raises €36.1mn in five-year T-bonds 9
Albania sells out €83.4mn in one-year, three month T-bills, yields down 10
Albania sells out €21.6mn in two-year government papers, yields down 10
Albanian govt turns to budget surplus of €97.8mn in January-March 10
Albania raises €28.9mn in ten-year T-bonds 11
FINANCIAL INTERMEDIATION 11
EBRD @25: Women entrepreneurs lead Western Balkans towards greater prosperity 11
EBRD @25: One-sided presidential contest offers chance to examine bank’s mission 15
Albania's NPL ratio falls y/y to 18.9% at end-March, up 1.5pp q/q 16
Albanian banks' net profit plunges 76% y/y at end-March 17
Albania's M3 money supply up 1.3% y/y at end-March 17
Albania's commercial bank loan portfolio down 1.8% y/y at end-March 18
Growth of Albania's commercial bank deposits edges up to 0.9% y/y at end-March 19
Albania’s insurance market down 2.7% y/y in Q1 19
Albanian voluntary pension funds’ net assets up 47.6% y/y at end-2015 20
EXTERNAL SECTOR 21
Albania’s Q1 trade gap widens 16% y/y 21
STRUCTURAL REFORMS AND CORPORATE NEWS 22
Albania, Montenegro, Bosnia and Croatia lobbying for IAP gas project 22
Albanian parl approves €34.9mn Kuwaiti loan for Vlore river road upgrade project 23
Revenues of Albanian mobile operators up 1% y/y in 2015 23
Bankers Petroleum works to complete transaction with China’s Geo-Jade 24
Albanian state-owned power producer KESH posts net profit of €3.9mn in Q1 24
Turkish tie-up to build €100mn HPP in Albania 25
Debts of Albanian oil refinery ARMO soar to 5mn 25
Albania preparing new measures to help metals and mining industry 26
China rates Albania's investment potential 26
Albania, Croatia and Italy to cooperate in agritourism sector 27
China Everbright and Friedmann Pacific sign deal to acquire Tirana airport operator 27
Albania to build new national stadium in Tirana worth €50mn 28
Germany provides €4.5mn grant to Albania for renovation of Tirana university campus 28
Albanian imports of oil products increase in Q1 due to closure of refinery ARMO 29
Bankers Petroleum shareholders to vote on deal for sale of company to Geo-Jade on May 31 29
Albania completes €12.3mn power network upgrade project in Tirana county 30
Tirana court launches bankruptcy procedure against Albanian steel maker Kurum 30
Albanian government to renegotiate terms on TAP gas pipeline project 31
Tirana airport reportedly sold to Chinese company for mn 32
TAP awards offshore construction contract to Saipem 33
Albanian farm products exports higher in 2015 33
China Everbright in talks to acquire operator of Tirana international airport 34
Albania to get €2.1mn from Italy for three infrastructure projects 34
Albania extends deadline for Milot-Morine motorway section to May 9 35
POLITICS 35
Albanian special parliamentary body adopts justice reforms 35
Albanian parl commissions endorse removal of Tirana airport exclusive rights 36
Albanian governing Socialist Party sues ex-prime minister Berisha 36
Refugee crisis worsens press freedom conditions in Southeast Europe 36
Albanian justice minister seeks reorganisation of judicial system according to EU standards 38
Albania monitoring political situation in Macedonia 38
Albania’s opposition Democrats to boycott parliament over expulsion of ex-PM Berisha 39
Albanian institutions investigate involvement of local firms in Panama Papers scandal 40
Albania stays at 82nd position in World Press Freedom Index 40
Albania to probe deals over power distribution company with Czech utility CEZ 41
European Parliament says Albania needs more reform efforts 41
Southeast Europe backslides on transition path, says Freedom House 42
Albanian parl speaker urges prosecutors to investigate Albanian involvement in Panama Papers scandal 44

Number of pages: 45
Release Date: Tue, 10 May 2016