WORLD TRADE  
ORGANIZATION   
G/SCM/Q2/ALB/6 
29 October 2012 
 (12-5857) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Replies to Questions posed by the EUROPEAN UNION1 regarding the  
New and Full Notification of ALBANIA2 
  
 The following communication, dated 23 October 2012, is being circulated at the request of the Delegation of Albania.   
 
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Under section 3 "On the Export-Credit Guarantee Fund"  
 
Question 1  
 
 Please provide clarifications on the shor t-term financing loans (repayment terms and 
other relevant details). 
 Reply 
 
 Export Credit Guarantee Fund is used to c over collateral requirements for commercial loans 
for enterprises (used on short-term assets) required by the banking system, with the aim of providing 
the same terms and conditions of financing for do mestic exporters and foreign, as well as increasing 
the level of competitiveness of Albanian enterpri ses.  The fund is expected to issue guarantees for 
exporters when they need short- term financing to conclude ag reements with foreign buyers. 
 
Question 2 
 
 Please describe in detail the form of  subsidy and the eligible expenses. 
 Reply 
 
 Aid is planned to be given in the form of  loan guarantees up to ALL 10,000,000 for each 
guarantee issued.  When the guarantee will be required on a period less than one year and less than the 
above limit, the exporter is entitled to apply again to  the fund for other guarantee, but the length of all 
applications should not exceed 12 months, during a ye ar and the amount of guarantees, in total, should 
not be greater than 15,000,000 ALL.  Credit guarante es is expected to cover up to 85% of the amount 
of credit approved by commercial banks to exporti ng undertakings.  The total amount guaranteed for 
the year 2008 is 0.42mln ALL, for the year 2009 is 0,15 mln ALL, for the year 2010 is 0 mln ALL 
and the year 2011 is 0 mln ALL. 
                                                      
1 G/SCM/Q2/ALB/5.    
2 G/SCM/N/220/ALB. G/SCM/Q2/ALB/6 
Page 2 
 
 
  Question 3 
 
 Please mention the full eligibility criteria. 
 Reply 
  Aid is planned to be given to  small and medium sized enterprises that carry out their activity 
in producing products for export, which meet the following conditions:  
 are registered to the taxation authorities and have regularly paid taxes and social security 
contributions; 
 have applied for loans for working capital in  a commercial bank and submit the decision of 
approval from the bank, specifying the amount of collateral required by banks; 
 During the last three years have profit on th eir balance sheet and turnover has been at 
increased rates; 
 have a planning cash flow for the next three years which guarantee repayment of the loan 
requested; 
 owners, shareholders, board members and executiv es of the company beneficiary do not have 
a control package on banks which lend them loans and are not creditors in the pyramid 
schemes and never have been convicted of crim inal offenses related to the management of 
material flows. 
 
 The aid scheme has duration of 6 years.  Under the section 4 "For the Establishm ent of Albanian Competitiveness Fund"  
 
Question 1 
  Please describe in detail the form of  subsidy and the eligible expenses. 
 Reply 
 
 The state aid plan "For the creation of the Albanian Competition Fund", aimed at supporting 
the activities associated only with:  
 technological improvements for customized pr oduct, including packaging and labelling, 
product certification, conformity assessment and implementation of quality systems; 
 advisory services in the form of market research and training; 
 Participation for the first time abroad, at a fair  or exhibition, as a visitor or exhibitor;   
 The maximum value for a single grant is 1,000,000 ALL, which has no effect on competition;   
 Scheme provides subsidies for covering costs rela ted to certain activities prior determined and 
not more than 50% of eligible costs. 
 
 For the year 2008 the aid amount is 12.8 mln ALL,  for year 2009 is 21 mln ALL, for the 
year 2010 is 16.2 mln ALL, for the year 2011 is 0 mln ALL.  Question 2   Please mention the full eligibility criteria.  G/SCM/Q2/ALB/6 
 Page 3 
 
 
  Reply 
 
 The establishment of Albanian Competitiveness Fund in 2007 had the planned total amount on 25 million ALL.  This Fund shall be granted up to 1 million ALL for one undertaking, but in any 
case not more than 50% of eligible costs. Eligible costs, which may be co-financed, include as follow:  
 
 in the case of aid for investment in tangible and intangible investment, such as:  technologic 
improvements for product adaptation, including packag ing and labelling;  product certification;  
conformity assessment;  quality management system implementation, provided that the aid intensity shall not exceed 50% of eligible costs; 
 in the case of consultancy services, such as, mark et research and training, where the aid shall 
not exceed 50 per cent of the costs of these services; 
 for first participation in fairs and exhibitions, where the aid shall not exceed 50 per cent of the 
additional costs incurred for renting, setting up and running the stand. 
 
 The Competitiveness Fund will be eligible for Small and Medium Enterprises which fulfil, in 
particular, the following conditions: 
 
 They are private undertakings or in the process of privatization;   
 They manufacture products or supply services which are internationally tradable which, 
during their processing generate significant  added-value to the final product;   
 They have a plan and a marketing strategy to expand their export activity;   
 They are able to finance 100% of costs related to the proposed project prior to project 
finalization. 
 
The aid disbursement shall be made at the end of the project, based on expenditures invoice. 
  
 
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