WORLD TRADE  
ORGANIZATION  G/SCM/N/155/ALB 
14 April 2008 
 (08-1739) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of the  
GATT 1994 and Article 25 of the Agreement on  
Subsidies and Countervailing Measures  
 
ALBANIA 
  
 The following notification, dated 9 April 2008, is being circulated at the request of the 
Delegation of Albania.    
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 In accordance with Article 25.1 of the Agr eement on Subsidies and Countervailing Measures 
and under article XVI of the GATT 1994, the Government of Albania is  notifying to the Committee on 
Subsidies and Countervailing Measures, the scheme  of the 4 subsidies programs as follows:   
  1. "On the Export-Credit Guarantee Fund".   
 2. "On deferral of VAT payment for im ported machineries and equipments".   
 3. "For the amount of financing, the crit eria and procedures on the implementation on 
professional practices program for unem ployed young workers, which have been 
graduated in the universities inside or outside the country".   
 4. "For the Establishment of Albanian Competitiveness Fund".    
 
 G/SCM/N/155/ALB 
Page 2  
 
  1. On the Export-Credit Guarantee Fund 
1. Title of the subsidy
 
 
The scheme "On the Export-Credit Guarantee Fund".   
 2. Period covered by notification
  
 
Year 2007.   
 3. Policy objective and/or purpose of the subsidy
 
 
The main objective of the scheme is to suppor t exporters, through state guarantees for short-
term financing loans, in order to ensure the same financing terms a nd conditions for domestic 
exporters with the foreign ones, as well as to increas e the competitiveness of Albanian undertakings.   
 
4. Background authority for the subsidy  
 
Department of Business Promotion (Ministry of Economy, Trade and Energy), ALBINVEST 
Law No. 8957, dated 17.10.2002 "O n Small and Medium Enterprises" and Law No. 9665, dated 
18.12.2006 "On state loan, state debt and stat e guarantees in the Republic of Albania".   
 
5. Form of the subsidy   
 
Loan guarantees.   
 
6. To whom and how the subsidy is provided  
 
To exporter SME's.   
 
7. Subsidy per unit or the total amount or  the annual amount budget for the subsidy  
 
Total amount for the year 2007:  200,000,000 (two hundred million) Lekë.   
 8. Duration of the subsidy
 
 
6 years.   
 
9. Statistical data permitting an assessmen t of the trade effects on the subsidy  
  Not yet applicable.    G/SCM/N/155/ALB 
 Page 3 
 
 
  2. On deferral of VAT payment for imported machineries and equipments 
1. Title of the subsidy  
  For the Establishment of Albanian Competitiveness Fund.    
2. Period covered by notification
 
  Year 2007.    3. Policy objective and/or purpose of the subsidy
 
 
 The purpose of the scheme is to increase th e competitiveness of Albanian SMEs, through 
improvement of their product and management qualiti es, delivering of products with high market 
standards, and their integration into  Regional and European markets.   
 
4. Background authority for the subsidy  
  Ministry of Economy, Trade and Energy, Department of Business Promotion, Albania Bussines Agency, ALBINVEST Law no. 9645, date d 27.11.2007 "On State B udget of 2007".   
  5. Form of the subsidy
 
 
 Grant with cost sharing (up to 50 per cent).    6. To whom and how the subsidy is provided
 
 
 Small and medium size undertakings.   
 7. Subsidy per unit or the total amount or  the annual amount budget for the subsidy
 
  Total amount of the scheme for the year 2007 is 25,000,000 (twenty five million) lekë.  
Max. up to 1 (one) million lek  per each undertaking.   
 
8. Duration of the subsidy
 
  3 years.    
9. Statistical data permitting an assessmen t of the trade effects on the subsidy
 
  Expenditure for 2007:  2.4 million leke 36 beneficiary undertakings (SME).   G/SCM/N/155/ALB 
Page 4  
 
  3. For the amount of financing, the criteria and procedures on the implementation on 
professional practices program for unemployed young workers, which have been graduated in the universities inside or outside the country 
1. Title of the subsidy
 
 
 For the amount of financing, the criteri a and procedures on the implementation of 
professional practices program for unemployed young workers, which have been graduated in the 
universities inside or outside the country.    2. Period covered by notification
 
 
 Year 2007.    3. Policy objective and/or purpose of the subsidy
 
 
 Preparing young labour force through active prof essional programs with the aim to increase 
their capacities and integrate them into the labour market.    4. Background authority for the subsidy
 
  Ministry of Labour, Social Affairs a nd Equal Opportunities (Policy Employment 
Department).   
  Law No. 7995, dated 20.09.1995 "On employme nt incentives", amended with law No. 9570, 
dated 03.07.2006.  CMD nr.873 dated 27.12.2006 "On the incentive programme for employment, 
through vocational practice for graduate unemployed workers".   
 
5. Form of the subsidy
 
  Direct financing from State Budged.    6. To whom and how the subsidy is provided
 
 
 All undertakings.    7. Subsidy per unit or the total amount or  the annual amount budget for the subsidy
 
 
 Up to 10 (ten) million lek per year.   
 8. Duration of the subsidy
 
  6 years.    
9. Statistical data permitting an assessmen t of the trade effects on the subsidy
 
  Expenditure for 2007:  6,8 m illion leke 33 beneficiary undertak ings (SME), 151 persons (the 
project has been applied only in Tirana as pilot project).     G/SCM/N/155/ALB 
 Page 5 
 
 
  4. For the Establishment of Albanian Competitiveness Fund 
1. Title of the subsidy  
  The scheme "On deferral of VAT payment for imported machineries and equipments".   
 
2. Period covered by notification
 
   From the year 2007.    3. Policy objective and/or purpose of the subsidy
 
 
 The objective is to facilitate business investments in Albania.    4. Background authority for the subsidy
 
 
 Ministry of Finance, Law No. 9856 dated 26. 12.2007 "On some amendment of law nr. 7928, 
dated 27.04.1995 "On VAT".    5. Form of the subsidy
 
  Deferral of VAT payment for a 12 months period.   
 
6. To whom and how the subsidy is provided
 
  All undertakings which import machineries a nd equipments for investment purpose.   
 
7. Subsidy per unit or the total amount or  the annual amount budget for the subsidy
 
  Not specified.    8. Duration of the subsidy
 
 
 Indeterminate.   
 9. Statistical data permitting an assessmen t of the trade effects on the subsidy
 
  Not available.   
 
  
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