Why does it matter?

The recent regulatory changes by the Bank of Albania are crucial, especially following the 2023 microcredit scandal involving companies like MCA. Borrowers were deceived through hidden fees, manipulated property auctions, and excessive interest rates, causing financial distress. By tightening controls on interest rates and loan approvals, the new regulations aim to prevent such abuses and restore public trust in non-banking institutions. The focus on transparency and stronger financial assessments will protect consumers from predatory practices, ensuring a more stable and responsible lending environment, essential for Albania’s financial system.

Why does it matter?

FDI is crucial for Albania’s long-term economic development. It injects fresh capital that helps drive infrastructure projects, supports the growth and expansion of businesses, and creates new job opportunities, boosting overall employment levels. Furthermore, a significant rise in FDI reflects increasing confidence from international investors in Albania’s economic potential, political stability, and legal framework, which can pave the way for more diversified investments and further integration into the global economy.

Why it matters

Despite recent wage increases for public administration and various professional categories, which have brought the average salary to 900 euros, pensions have not been adjusted for several years. Prime Minister Edi Rama has promised not only indexation but also the launch of a national discussion on increasing pensions.