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IV. TRADE POLICIES BY SECTOR 
(1) OVERVIEW  
1. Agriculture is the main source of employment in Albania, and still contributes a significant, 
albeit declining, share to GDP.  The sector, howev er, is uncompetitive and lacks investment.  Farms 
are small and fragmented and the sector suffers from organizational and infrastructural shortcomings.  
Albania is a net food importer.  Tariff protection and government support to the sector is relatively 
low:  Albania's average applied MFN tariff on agri cultural products (WTO definition) is 8.8%, the 
highest tariff being 15%.  Most of Albania's imports  are from the EU.  However, Brazil, Russia, and 
Turkey are key sources of imports for certain agri cultural products.  Domes tic production is largely 
consumed domestically, and Italy is the destinati on for most of Albania's agricultural exports.  
Albania does not provide agricultural export subsidi es, and just over 60% of government support to 
the sector in 2008 was green box support.  Direct paymen ts to farmers, have largely been for drainage 
and irrigation, and more recently to subsidize the planting of trees to increase fruit production.   
2. The services sector is by far the largest contributor  to output in Albania.  Albania has made 
wide-ranging and substantial co mmitments under the GATS, with commitments in 11 out of the 
12 broadly defined services areas, or 111 of the 1 60 services sectors.  Albania has also made over 
100 GATS notifications. 
3. The telecommunications sector is largely liberalized.  Key developments in the sector over 
the review period include:  the liberalization of the fixed-line market in 2005;  the privatization of the 
incumbent, Abtelecom, in 2007;  and the enactment  of new telecommunications  legislation in 2008.  
At end 2009, Albtelecom was still the largest provider of fixed-line services, but more providers are 
entering the market;  fixed-line penetration, however, remains low.  There were four mobile operators 
and a high, 129%, mobile penetration rate.  Broadba nd penetration rates have increased substantially.  
4. In the financial services sector, key legisla tive and institutional developments since 2000 
include: new laws on insurance, banking and securities;   the separation of the Tirana Stock Exchange 
from the Bank of Albania;  and the establishment of the Albanian Financial Supervisory Authority, an 
independent institution responsible for superving the insurance, securities, and private pensions 
markets and other non-banking financial activities.  The banking system in Albania is dominated by 
foreign capital, which accounts for nearly 90% of tota l capital.  Foreign banks may take the form of 
branches or of subsidiaries incorporated in Albania.   Branches are required to invest part of their 
initial capital in certain assets.  The banking system has so far proven itself robust in the face of the 
global financial crisis.  None of the 16 commercial banks operating in the country have failed or been 
provided with government support, and stress t ests undertaken in 2008 indicated the system's 
resilience to various risks.  An increase in non-pe rforming loans, however, is of concern.  Foreign 
insurance companies may be established as subsidiari es, branches, or representative offices, and they 
receive national treatment.  Risks that occur in Albania must be insured locally, unless otherwise 
foreseen in international agreements to which Albania is a party or with respect  to insurance of risks 
connected to sea or air transport. 
5. Modernization of Albania's transport infrastructure is seen as central to sustaining trade and 
private-sector development and, at a more general level, economic growth and investment.  Albania 
has scheduled GATS commitments on maritime, air, a nd road transport, as well as services auxiliary 
to all modes of transport.  The Stabilization a nd Association Agreement with the EU also has a 
transportation component.   Albania WT/TPR/S/229/Rev.1 
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6. With respect to maritime transport, key de velopments over the review period include the 
adoption of a new maritime code and a law on security of ships and port facilities.  In addition, the 
Durrës Port Authority was established to operate th e main port on a commercial basis.  A Maritime 
Administration is being established.  There are no restrictions on the provision of international 
maritime services for passengers or freight.  Cabotage is restricted by law;  however, this has no 
practical implications since there is currently no such activity.  The authorities confirmed that all port 
services at Durrës Port are operated by the private sect or, with substantial participation by foreign 
companies.  Efforts are ongoing to upgrade the infrastructure at all four of Albania's ports.   
7. Albania has one international airport.  In 2005,  following an international tender, a 20-year 
concession for the management and operation of the airport, including ground-handling, was granted 
to a private consortium.  Under the agreement, this  consortium has the exclusive right to international 
traffic in the country.  This may hinder the devel opment of the five other national airports, which 
currently operate only domestic charter flights.  Al bania has signed and is in the transition process of 
implementing the European Common Aviation Area Agreement (ECAA).  The ECAA will replace the majority of the bilateral air services agreements  in place and, in extending the Single European 
Sky to Albania, will represent a signi ficant liberalization of the sector. 
8. Albania has undertaken commitments on all the professional services subsectors in the 
classification list, with only a few limitations sche duled under market access and national treatment.  
A new law "Regulated Professions in the Republic of Albania" was adopted in 2009;  this law 
mandates the establishment of professional associations to regulate and set the qualification 
requirements for doctors, dentists, pharmacists, nurses,  midwives, physiotherapists, vets, architects, 
and engineers.  Following an overhaul of statutor y auditing requirements, a new law has also been 
adopted to regulate the accounting profession. 
(2) A
GRICULTURE AND AGRI-FOOD 
(i) General features and policies 
9. Agriculture continues to be an important ec onomic activity for Albania.  In 2008, around 
1.7 million people (nearly 50% of the population) we re employed in farms.  Agriculture (together 
with hunting and forestry) makes a significant contribution to total GDP (basic prices), although this declined gradually over the review period, from 26% in 2000 to 19% in 2007.
1   
10. As reported by the Ministry of Agriculture, Food and Consumer Protection (MAFCP) in 
2008, livestock (mainly cattle, sheep and goats) acc ounted for 52% of total agricultural production 
(around lek 76 billion), field crops for 32% (lek 46  billion) and fruit trees, 16% (lek 23 billion).  
Particularly strong recent growth has been reporte d for fruit (especially vineyards) which nearly 
doubled over the period 2000-08.2  Most farming is subsistence, with only 30% of livestock and crop 
production being orientated to the market (mainly vegetables, potatoes and fruits).3  
11. Albania is a net importer of food.  Agri-f ood imports totalled just over US$908 million in 
2008, representing 17.3% of total merc handise imports;  in the same year the value of exports was just 
over US$104 million, or 7.7% of the total (Tables A1.1  and A1.2).  Italy is the principal destination 
for Albania's exports (Table IV.1).  
                                                      
1 Bank of Albania (2009a).   
2 Ministry of Agriculture, Food and Consumer Protection (2009). 
3 Ministry of Agriculture, Food and Consumer Protection (2007b). WT/TPR/S/229/Rev.1 Trade Policy Review 
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Table IV.1 
Exports of agricultural products (WTO de finition) by main trading partners, 2008 
(US$ million and shares) 
Product Value of exports 
(US$ million) Main trading partners 
Certain grains, seeds and fruit; straw and fodder 25.7 Germany (38.4%) United States 
(14.7%) Turkey (11.2%) 
Preparations of meat and fish 22.2 Italy (93.7%) Greece (4.2%) Croatia (1.8%) 
Raw hides and skins (excl. fur skins), leather 18.3 Italy (78.4%) Turkey (9.5%) Bosnia and 
Herzegovina (6.7%) 
Note: Data provided at the 2-digit HS level.   
Source:  UNSD Comtrade database. 
12. The Albanian authorities have identified a number  of challenges facing the agriculture sector.  
Primarily, farm land is fragmented, with mostly sm all farm holdings, averaging 1.2 hectares in 2008.4  
This resulted from land reforms undertaken in the 19 90s when large collective farms were dismantled 
and the land distributed to former workers, and th e subsequent reluctance of the new landowners to 
sell their land.  Other challenges include:  dive rsifying farm production;  increasing the use of 
mechanized farming techniques5;  improving food safety standa rds (see Chapter III(2)(ix));  
improving the marketing of products for export and facilities to store, process, and pack products;  
and developing infrastructure (transport,  water, and electricity).  In its current state, the sector is not 
competitive, nor is it an attractive ta rget for private sector investment.6   
13. Government policies to date have been fo cused mainly on rehabilitating infrastructure, 
particularly irrigation and drainage, and market infra structure and laboratories (see section (v) below);  
creating a favourable environment for business thr ough land privatizations;  and assisting farmers 
through training and extension services and th e transfer of knowledge, new practices, 
and technologies.  Technical and financial aid from external donors has played an important 
role in supporting the sustainable development of  agriculture.  Aid for projects being implemented 
over the period 2003-11 amounts to some €48 million.7  The agriculture sector is eligible for funds 
from the European Agricultural Fund for Rural Deve lopment (EAFRD), and the EU Instrument for 
Pre-Accession Assistance for Rural Development Programme (IPARD).  Under the latter, Albania received €2 million for the period 2010-12.   
(ii) Legal and policy making framework 
14. The Ministry of Agriculture, Food and Consum er Protection (MAFCP) is responsible for 
policy development and implementation in the agriculture sector.
8  The MAFCP produces an annual 
integrated programme setting out how it intends to  implement the Government’s objectives for the 
sector.  The MAFCP is also responsible for de veloping draft laws and regulations;  providing 
education and training;  undertaking analytical and development studies; as well as providing public 
service activities such as irrigation and drainage, and extension services;  agricultural research and 
                                                      
4 The sector is overwhelmingly dominated by micro-enterprises employing between one and four 
people. 
 5 The MAFCP noted that only 73% of families working in agriculture are partially using mechanization 
for land plowing, and more than 25% are using animals for this purpose.  This has been partly attributed to the  
high rental fees charged by the owners of mechanized farming equipment. 
6 Ministry of Agriculture, Food and Consumer Protection (2007a);  Council of Ministers (2008);  and 
Ministry of Agriculture, Food and Consumer Protection (2007b). 
7 Ministry of Agriculture, Food and Consumer Proteciton (2008). 
8 Ministry of Agriculture, Food and Consumer Protection online information.  Viewed at:  
http://www.mbumk.gov.al. Albania WT/TPR/S/229/Rev.1 
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laboratory control;  breeding services;  analysis of agricultural policies;   and marketing services.  A 
newly established Payments Agen cy, under the MAFCP is charged with implementing agricultural 
policy measures, including the administration of funds from the State and international donors, as well as analysis and evaluation-related work.
9  The establishment of this agency was required by the EU in 
order for Albania to benefit from EU funding.10  Approximation with EU law will also require the 
establishment of a rural development directorat e in the MAFCP which will be responsible for 
developing the policies and programmes fo r the use of rural development funds.11 
15. The main law governing the sector is Law No. 9,817 of 22 October 2007 (for agriculture 
and rural development), which is based on four principle EU Regu lations:  Council Regulation (EC) 
No. 1,698/2005 of 20 September 2005 on support for rura l development by the European Agricultural 
Fund for Rural Development (EAFRD));  Council Regulation (EC) No. 1,234/2007 of 
22 October 2007 establishing a common organization of agricultural markets) and on specific 
provisions for certain agricultural products;  Council Regulation (EC) No. 1,782/2003 of 
29 September 2003 (consolidated version) establis hing common rules for direct support schemes 
under the common agricultural policy and establishi ng certain support schemes for farmers;  and 
Council Regulation (EC) No. 1,290/2005 of 21 June 2005 on the financing of the common 
agricultural policy-CAP.   
16. The Sector Strategy of Agriculture and Food  (SSAF), 2007-13 lays out the Government’s 
programme for the sector, in line with the overall objective of moving towards integration into the 
EU.12  The SSAF is the agricultural component of  the National Strategy for Development and 
Integration (NSDI). It sets out five strategic pr iorities:  increased financial support for farms, 
agricultural and agri-processing businesses;  improved  management of irriga tion and drainage of 
agricultural land;  improvements to the marke ting of agricultural and agri-processing products;  
increased level and quality of technologies, information, and knowledge of farmers and 
agri-processors;  and better quality and safety of agricultural and agri-processing products.  In 
addition, certain strategic subsectors have been identified for priority development:  fruit growing 
(including olives) and viticulture;  horticulture;  livestock;  and industrial processing of fruits, 
vegetables, milk, and meat.  The Government estim ates that expenses plus investments to implement 
the SSAF may grow from lek 5.5 billion in 2007 to around lek 22 billion over 2011-13.   
17. The Inter-sectoral Rural Development Strate gy of Albania (ISRDSA) also contains 
government priorities for the agriculture sector as th ey relate to rural development.  The authorities 
note that these priorities have been developed to re flect those of the European Union.  Strategic 
priorities include increasing the competitiveness of the agricultural and agri-processing sector through 
farm modernization measures and support for restructuring and value-added activities. 
18. The European Partnership (EP) with the EU adopted in November 2007 stipulates the main 
priorities for the future development of agricultural policy.  In the short term, the priority is to adopt a 
new law on food in line with EU standards, stre ngthen the food safety system and related control 
systems, and improve the phyto-sanitary and veterinary  legislation and practices.  In the medium term, 
                                                      
9 The responsibilities of the Payments Agency are set out in the Law for Agriculture and Rural 
Development, Articles 6 and 21. 
10 The basic functions of a Payments Agency are: implementation of the national policy and measures 
in the agri and food sector and rural development;  implementation of measures of the EU Instrument for 
Pre-Accession Assistance for Rural Development Programme (IPARD);  preparation for implementation of 
measures according to the CAP (direct payments).  Th e IPARD is a €10 billion EU programme for the 2007-13 
period to assist Albania and other Western Balkans countries to implement the acquis communautaire  in 
agriculture.  Only an accredited paying agency can make payments from IPARD and EAFRD funds. 
11 Gjeci (2009). 
12 Ministry of Agriculture, Food and Consumper Protection (2007b). WT/TPR/S/229/Rev.1 Trade Policy Review 
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Albania is expected to develop strategies for land use, creating a land market, rural development, and 
diversifying farm activities in order to enhance agricultural competitiveness.   
(iii) Border and related measures 
19. Tariff protection granted to the agriculture sect or is higher than the overall simple average 
applied MFN tariff.  While the latter was 5.2% in 2009, the average MFN applied tariff for agriculture 
(WTO definition) was 8.8%, with a highest tariff of 15%.  Under its WTO commitments, Albania has 
bound all agricultural tariff lines and does not maintain tariff quotas (Chapter III(2)(iv)).   
20. In 2008, in value terms, most imports of agricultural and food products were from other 
European countries.  However, Brazil was the main  source of imports of meat and of sugars and 
confectionary;  Russia was the main source of cereals, and Turkey of preparations of cereals, flour, 
starch or milk (Table IV.2).   
Table IV.2 
Imports of agricultural products (WTO de finition) by main trading partners, 2008 
 Main trading partners 
Product Value of imports 
(US$ million) Principal Second Third 
Cereals  136.0 Russia (26.7%) Hungary (15%) Ukraine (8.9%) 
Beverages, spirits and vinegar 83.0 Ital y (29.9%) Greece (22.3%) Austria (20.9%) 
Tobacco and substitutes 81.8 Germany (35.2%) Greece (28. 9%) Poland (15.9%) 
Raw hides and skins (excl. fur), and leather  76.8 Italy (96.4%) India (1.4%) Spain (0.6%) 
Fats and oils  75.7 Hungary (19.5%) Ukraine (13.7%) Bulgaria (13.2%) 
Meat and edible offal 68.8 Brazil (38.9%) United States (16%) Italy (15.8%) 
Preparations of cereals, flour, starch or milk 59.8 Turkey (38.7%) Italy (23.9%) Bulgaria (15.3%) 
Edible fruit and nuts 57.0 Italy ( 35.8%) Greece (27.5%) Ecuador (25.6%) 
Sugars and confectionary 44.6 Brazil ( 80.5%) Turkey (6.5 %) Greece (2.9%) 
Live animals 41.7 Bulgaria (54.9% ) Hungary (11.9%) Greece (11.8%) 
Note: Data is provided at the 2-digit HS level.   
Source: UNSD Comtrade database. 
21. Phytosanitary or health certificates are requi red for certain imports (Chapter III(2)(i))) and 
importers of certain products must be licensed (Chapter III(2)(vi)). 
22. Albania did not reserve the right to apply the special safeguard mechan ism to any agricultural 
product upon its accession to the WTO.  Albania has not notified any export restrictions to the WTO 
under Article 12.1(b) of the Agreement on Agriculture. 
(iv) Export subsidies 
23. Albania has notified the WTO that for the period 2000-08, it provided no export subsidies.13   
(v) Domestic support measures 
24. Under Law No. 9,817, domestic support to the agricultural sector takes two main forms:  
measures to stabilize the market during unsustainable  market conditions;  and direct payments to 
producers.  Domestic support must conform to the follo wing criteria:  it should not have the effect of 
supporting prices at the producer level;  the support given to a specific product should not be more 
than 5% of the total value of annual production fo r such a product;  and total support that is not 
                                                      
13 WTO documents G/AG/N/ALB/1, 6 October 2 008 and G/AG/N/ALB/3, 21 October 2009. Albania WT/TPR/S/229/Rev.1 
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product specific should not be more than 5% of th e total value of agricultural production during the 
respective year.  
25. Albania's notifications to the WTO on domestic  support cover the period 2000-08.  Albania 
has reported that it did not provide Amber box suppor t (i.e. Current Total Aggregate Measurement of 
Support (AMS)) above the de minimis threshold over  this period.  Non-product specific AMS has 
consisted largely of subsidized water rates for irrigation purposes and, since 2007, also support to 
plant trees.  The main target for green box spending  have been inspection and infrastructural services 
(Table IV.3).14  
Table IV.3 
Domestic support, 2000-08 
(lek '000) 
 Product specific AMS Non-product specific AMS Green Box 
2000 0 385,000 207,000 
2001 0 397,000 195,400  
2002 0 243,000 1,025,200 
2003 0 277,000 768,000 
2004 0 328,000 949,500 
2005 0 610,000 970,500 
2006 0 500,000 1,286,000 
2007 0 976,000 1,777,000 
2008 0 854,000 853,800 
Source:  WTO documents G/AG/N/AL B/2, 6 October 2008 and  G/AG/N/ALB/4, 4 November  2009;  and information 
 provided by the authorities. 
26. The authorities have reported that, the value of  direct payments for agricultural production 
was increased to US$8 million in 2008 and to US$10 million in 2009, and was foreseen to be 
US$10 million for 2010.  Government support has been extended to fixe d payments per head for cows 
and sheep, as well as payments for bee hives, inte nsive snail breeding, olive oil production, and 
planting of certain vegetables.   
27. Some of the policy instruments that involve financial assistance or incentives to farmers are 
loan schemes offered through the Payments Agency  for investments in production technologies, and 
subsidized interest rates for private bank loans.  
(3) MANUFACTURING  
28. Manufacturing accounted for 10% of GDP and 7% of employment in 2007.   Albania is a net 
importer of manufactured goods (SITC):  in 2008, th e value of manufactured imports was just over 
US$3.3 billion (some 63% of total merchandise imports).  Albania's main imports were machinery and transport equipment, particularly automotiv e products and certain non-electrical machinery 
(Table A1.2).  In the same year, the value of Albania's exports of manufactured products was 
US$948.5 million (70% of merchandise exports).  The main export items  were clothing and footwear 
products (Table A1.1).  The main markets for these products were Italy and Greece. 
29. Clothing and footwear represent over 50% of the sector’s production value.  Other 
manufactures include products of wood and paper,  chemicals and plastics, and refined oil.  
30. In 2009, the average applied MFN tariff for non- agricultural products was 4.2%.  The highest 
applied tariff was 15% (Chapter III(2)(iv)).   
                                                     
 
14 WTO documents G/AG/N/ALB/2, 6 October 2 008 and G/AG/N/ALB/4, 4 November 2009. WT/TPR/S/229/Rev.1 Trade Policy Review 
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31. Albania does not make use of non-tariff barriers to protect its manufacturing sector;  no 
anti-dumping duties or safeguard measures are applied,  nor is the licensing regime used to protect 
manufacturers. 
(4) SERVICES  
(i) Introduction 
32. The services sector is by far the largest contributor to output in the Albanian economy.  It 
accounted for 58% of GDP and 2007 and 38% of total employment, showing that productivity is considerably higher than in the rest of the economy,  particularly in the agricultural sector.  Services 
also play an important role in Albanian trade (Chapter I(6)(ii)). 
33. Albania made wide-ranging and substantial sect or-specific commitments under the General 
Agreement on Trade in Services (GATS)
15, including 11 of the 12 broadly defined service areas, or 
111 of the approximately 160 services subsectors in the classification list.16  In the majority of cases 
there are no limitations against modes 1 to 3 for market access and national treatment (Table AIV.1).  Under the horizontal section of Albania's schedul e national treatment under mode 3 (commercial 
presence) is subject to a limitation concerning the purchase of state-owned non-agricultural land, 
whereby the value of investments made by foreign persons, if on previously state-owned land, must 
be three times higher than the value of the non-agricu ltural land itself.  A further horizontal limitation, 
in the market access column relates to controls on capital transactions and capital movements.  Like virtually all other WTO Members, Albania has rese rved the right, under a horizontal limitation, to 
limit access under mode 4 to specified categori es of natural persons and periods of stay:  
intra-corporate transferees for a 5-year period, ser vices sellers for 6 months in any 12-month period, 
non-renewable, and persons responsible for se tting up a commercial presence for 3 months, 
renewable.  Albania has listed MFN exemptions con cerning:  the transport by road of passengers and 
freight;  the sale and marketing of air transport services and computer reservation systems;  and 
various audiovisual services.  Albania submitte d an initial offer on services in the DDA in 2005.
17   
34. Albania has notified the WTO that its enquiry point is the Department of Trade Policy in the 
Ministry of Economy, Trade and Energy (METE).18  As at early October 2009, Albania had made 
103 notifications under Article III:3 of the GATS;  and one notification under Article V:7(a).  This 
makes Albania an outstanding case with respect to the degree of transparency under the provisions of 
GATS Article III:3. 
(ii) Telecommunications and related services 
(a) Market features and developments 
35. Albania made GATS commitments on telecommunications upon its accession to the WTO in 
2000.19  For Modes 1 and 3, it reserved for Albanian Telecom (AT) the exclusive right to provide 
fixed telephony, except in rural areas, until 31 Dece mber 2002.  Albania also included in its schedule 
an across-the-board limitation in the sense that telecommunication services in Albania may be 
provided only by juridical persons.  However, in 2003/04, when the privatization of Albtelecom ran 
                                                      
15 WTO document GATS/SC/131, 22 November 2000. 
16 WTO document MTN.GNS/W/120, 10 July 1991. 
17 WTO document TN/S/O/ALB, 7 June 2005. 
18 WTO document S/ENQ/78/Rev.11, 26 October 2009. 
19 WTO document GATS/SC/131, 22 November 2000. Albania WT/TPR/S/229/Rev.1 
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into difficulties, Albania sought and was granted a waiver under Article IX:3 of the WTO 
Agreement.20  The waiver postponed the commitment's implementation date by one year.   
36. The telecommunications sector, together with postal services, accounted for 4% of GDP in 
2008.   The sector has been evolving rapidly in recent years:  the number of fixed-line subscribers 
increased from 250,000 in 2006 to 360,000 in mid 2009, al though the rate of pe netration continues to 
be one of the lowest in Europe .  Mobile telephone subscribers reached 3.52 million in July 2009, a 
penetration rate of 129%.  Fixed broad-band penetration has also been increasing rapidly, from 36,000 
in 2008 to over 80,000 in 2009, with a penetration rate of 2.5%.   
37. Albtelecom Sh.A., which was privatized in 2007, is the largest fixed-line service provider.21  
There are also 73 fixed telephony providers (alternativ e operators), either regional or local.  There are 
four mobile phone service providers:  Albanian Mo bile Communications Sh.A. (AMC), established in 
1995, started providing service in May 1996;  V odafone Albania Sh.A., obtained a licence in 
June 2001 and started service in July 2001;  Eagle Mobile Sh.A., granted a licence in March 2004, but 
started operating only in 2008; and Mobile 4AL Sh .A., obtained a licence from AKEP in June 2009.  
There are also 90 operators licensed to provide internet services. 
38. While the market has been formally libera lized since January 2005, Albanian Telecom 
(Albtelecom) remains the dominant operator in th e fixed-line market.  The Government signed a 
share-purchase agreement with Calik Enerji Tele komunikasyon Hizmetleri A.S. on 19 June 2007 to 
sell 76% of the shares of Albtelecom €120 million.  The EBRD provided debt financing to a consortium consisting of Calik Ener ji and Turk Telecom to assist it in acquiring the 76% stake, and 
partly finance the post-acquisition capita l expenditure programme of Albtelecom.
22  This was part of a 
project expected to enable Albtelecom to expand its fixed-line network and increase penetration, and 
to increase competition in the mobile market, by  allowing Albtelecom to launch the third mobile 
operator in the country.  The acquisition of th e incumbent operator by foreign investors was 
considered a necessary step to fully liberalize the Albanian telecommunications market, and is 
expected to enhance modernization of the telecoms services. 
39. Fixed incumbent telecom retail tariffs are differe ntiated by user, with lower rates applied for 
residential than for non-residential users.  The monthly rental fee in January 2010 was lek 358 (€2.75) 
for residential users and lek 1,350 (€10.4) for non-r esidential users.  An off-peak minute local call 
costs lek 2.5 (€0.02) and lek 3.25 (€0.25), respectiv ely;  while a one-minute call within Europe costs 
lek 11.78 (€0.09), and lek 15.38 ( €0.12) off-peak, respectively.  These tariffs are subject to the VAT. 
(b) Institutional and legal framework 
40. The Electronic and Postal Communications Authority (AKEP) and the National Radio and 
Television Council (NRTC) monitor the regulatory framework governing tel ecommunications and the 
implementation of the policy objectives defined by the Council of Ministers.  AKEP was established 
and started as independent author ity in 1998, in accordance with La w No 8,288 of 18 February 1998.  
It is responsible for promoting the development of telecommunications;  it also awards licences, 
regulates interconnections between telecommunicati on operators, supervises the quality of the 
services offered by operators, and must encourag e competition among telecommunications operators.   
                                                      
20 WTO document WT/L/567, 17 May 2004. 
21 Albtelecom is the only operator of fixed telephony  in the market with a first class licence (of a 
15-year duration) to develop, use, and maintain a public telecommunication network and to offer services in the 
whole territory of Albania. 
22 EBRD online information.  Viewed at:  h ttp://www.ebrd.com/projects/psd/psd2007/37836.htm. WT/TPR/S/229/Rev.1 Trade Policy Review 
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41. AKEP allocates frequency bands for civil users,  except radio or television broadcasting 
operators.  It is also responsible for type certif ication of imported telecom equipment; approving the 
adoption of domestic telecom equipment;  prepar ing and approving technical standards for telecom 
networks, in line with international recommendati ons;  designating the operators with significant 
market power;  managing and administering the Un iversal Service Fund;  and for approving the 
reference offer for access and/or for interconnection,  as well as the reference offer for unbundled (not 
restricted) access to the local loop of the opera tors with significant market power.  AKEP is 
responsible for supervising the tariffs charged by public telecom operators.23  
42. Tariffs for public telecom services are set by the operators and, by law, must be 
cost-oriented.  Tariffs must be published and ch anges must be notified through public information 
means at least seven days prior to their entry into  force.  AKEP is entitled to regulate tariffs on:  
services included in the universal service scheme pr ovided by the universal service provider, and 
services provided by operators with significant mark et power, in the relevant market (see below). 
43. The main legislation regulating the teleco mmunications market is Law No. 9,918 of 
19 May 2008.  Provision of telecom services and in stallation of networks requires an AKEP general 
authorization, except when the networks and/or services are not used for commercial purposes and are 
not available to the public, or are used only for private-user needs or fo r the internal needs of 
institutions. 
44. General authorization may include  conditions such as:  obligati ons of financial contributions 
for universal service;  interoperability of services a nd interconnection of networ ks;  provision and use 
of numbers from the Numbering Plan for end-user s;  protection of personal data and privacy;  
obligation to offer access;  effective use of the radio frequencies spectrum, etc. 
45. AKEP may designate one or more universal ser vice providers;  the designated provider is 
Abtelecom. Universal service providers establish thei r own tariffs;  they may offer optional tariffs, 
special tariff packages and special payment methods for subscribers with low income and/or special 
needs.  AKEP monitors the level and changes of ta riffs for services offered under the universal service 
obligation.  Tariffs for individual services pr ovided under universal service must be the same 
throughout Albania.  Universal service obligations include:  connection of the end-user to the public 
telephone network;  publication of the printed te lephone directory;  ensuring public pay telephone 
services in the entire territory of Albania;  and ensuring access conditions for disabled end-users.   
46. Undertakings with significant market power (SMP undertakings) are subject to regulation 
by AKEP.  Analysis and designation of these undertak ings in the relevant ma rkets is required to be 
done periodically by AKEP, but not less than ever y two years.  In assessing significant power, AKEP 
must take into account:  market share;  entry barri ers to the relevant market;  potential competition;  
supply and demand elasticities;  sales and distribu tion networks;  economies of scale;  degree of 
vertical integration;  degree of product differentiation;  access to financial resources;  and market 
behaviour, including prices, marketing policy, servi ce and product limitations, and entry barriers.  
Two or more undertakings may be found to have a dominant position, even in the absence of links 
between them, if they operate in a way considered to be c onducive to coordinated actions 
independently of its competitors, customers or end-users.  AKEP cooperates with the Competition 
Authority when analysing market power.  SMP un dertakings have non-discr imination obligations 
with regard to access and interconnection, for which they must publish a reference offer.  If AKEP 
determines that an SMP undertaking is keeping tari ffs at an unreasonably high or low level, it may 
impose cost-oriented tariffs. 
                                                      
23 AKEP online information.  Viewed at:  http: //www.ert.gov.al/ert_eng/static/KushJemi_Roli.html. Albania WT/TPR/S/229/Rev.1 
 Page 91 
 
 
(iii) Financial services 
(a) Market features and developments 
47. Albania made extensive GATS commitments with re spect to financial services.  In insurance, 
market access for both life and non-life insura nce (except marine, aviation, and other transport 
insurance) was bound without limitations for mod es 2 (from 1 January 2003) and 3.  Access bindings 
under mode 1, from 1 January 2005, have remained c onfined to the insurance of non-residents and of 
foreign investments in Albania.  Bindings on na tional treatment have been modified accordingly, 
except for an additional limitation on mode 3, wh ich provides that foreign companies must have 
exercised insurance activities in their home count ries for at least five years and their general 
representative must reside in Albania.  While the ma rket access regime for marine, aviation, and other 
transport insurance under modes 1 to 3 has b een open since accession, national treatment has 
remained subject to the same limitations as sch eduled for the other insurance segments.  
48. Market access in banking was bound without r estrictions for mode 3, while cross-border 
supply was left unbound in most subsectors.  Unde r mode 2, Albania undertook to remove all capital 
controls by 2010.  National treatment was bound without restrictions for modes 1 to 3.  Albania also 
made extensive commitments with respect to trad ing in securities and some further subsectors, for 
which market access and national treatment were fully  bound for modes 1, 2, and 3.  In contrast, 
market access for the settlement and clearing ser vices of financial assets, including securities, 
derivative products, and other negotiable instrument s was left unbound, as it is a prerogative of the 
Bank of Albania.24 
49. The financial services sector's assets were equiva lent to 82% of GDP in 2008.  Non-banking 
financial services contributed some 0.65% to GDP.  There are no comprehensive statistics on trade in 
financial services;  there are, however, data on insurance services.  Albania is a net importer of insurance services, with a deficit of US$115 million in 2008, resulting from inflows of US$5 million 
and outflows of US$120 million.
25 
50. At end 2009, Albania's banking sector compri ses 16 commercial banks, including branches of 
foreign banks, with some 524 offices.  The financial system also includes 13 non-bank institutions;  
240 foreign exchange bureaus;  2 savings unions and credit associations;  135 savings and credit 
associations;  and 1 representative office of a foreign bank.26  The banking system employed 
5,155 staff in 2007.  Foreign capita l constituted 94% of the total banki ng system capital at end 2008, 
up from 88% in 2007.  All banks have been pr ivately owned since March 2009 as the Albanian 
Government sold its shares in the United Bank of Al bania (40% of the shares) and in the ProCredit 
Bank, through the FEFAD Foundation (25% of the sh ares).  The degree of financial intermediation 
has been increasing in recent years:  total cons olidated assets of these banks represented 82% of GDP 
at end 2008, compared with 79.4% of GDP at e nd 2007.  Banks account for the major part of the 
financial system's assets structure:  at e nd 2008, the 16 banks had an asset share of 95.4%, 
representing 78% of GDP.  The loan portfolio was equi valent to 29.9% of GDP in 2007, 37% in 2008, 
and 38% in September 2009. 
51. Assets denominated in foreign currency account for about 50% of the banking sector's total 
assets.  Banks show sound financial performance i ndicators and high capitalization ratios.  The 
regulatory capital was 16.7% of  risk-weighted assets in September 2009, way above legal 
                                                      
24 WTO document GATS/SC/131, 22 November 2000. 
25 Bank of Albania online information.  Viewed  at:  http://www.bankofalbania.org/web/Time_ 
series_22_2.php?evn=agregate_detaje&evb=agregate&cregtab_id=535&periudha_id=5. 
26 Bank of Albania (2009c). WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 92 
 
 
requirements (see below);  and it represented 9.1% of total assets in November 2009.  A stress test 
conducted by the Bank of Albania in 2009 showed th at, at year-end 2008 the banking sector appeared 
resilient to direct exchange rate risk, interest rate  risk and indirect credit risk through changes in the 
interest rates.  However, net non-performing loan s increased substantially as a result of the global 
financial crisis, from 10.05% of regulatory capita l in December 2007, to 21.97% in March 200927, and 
28.8% in November 2009.  The authorities noted that  there has been more conservatism on the part of 
banks and borrowers since the financia l crisis.  The authorities also reported that in the last quarter of 
2008, there was an 7.1% withdrawal of deposits;  how ever, there has been a reversal of this trend 
since, and for the last quarter of 2009, th e authorities reported an increase in deposits. 
52. As a result of the financial crisis the Bank of Al bania has taken a number of actions including:  
strengthening the daily monitoring of banking sect or developments, and re porting requirements;  
undertaking open market operations to offer liquidity  to commercial banks;  interest rate reductions 
and an increase in the value of banking deposits in sured (see below);  regulatory amendments to 
reduce maximum exposure to mother banks or banks  within the group from 25% to 10%;  and a 
revision to the liquidity risk management regulat ory framework to introduce international guidelines 
and best practice.  The authorities noted that they are also working on a series of further regulatory 
changes aiming to preserve a balance in banking activity, in areas such as regulation of large exposure management in banks;  foreign exch ange open positions;  credit risk administration;  bank liquidity 
administration;  preparation of conservatorship and liquidation procedures (winding-up procedures);  
additional capital charges for operational risk.   
53. Overall, there are ten insurance companies opera ting in the market, of which two offer life 
insurance (SiCred, Sigal Life), one is a compos ite life and non-life insurance company (INSIG), and 
the rest (seven) offer non-life insu rance.  Sigal is the largest, with some 63% of the market in 2009.
28  
The insurance market has grown rapidly in recent years;  for example, gross insurance premiums 
increased by 18.6% in the period January-July 2009 , compared with the same period the previous 
year, totalling lek 4.77 billion.  Of this tota l, lek 4.36 billion corresponded to 410,116 non-life 
insurance policies, and lek 411.5 million, to 34,458 lif e insurance policies.  Overall gross paid claims 
for the period were lek 926.2 million (up 27.4%).29 
54. Albania has a small securities market in wh ich titles are negotiated on the Tirana Stock 
Exchange (TSE), which operates as a secondary mark et for shares, government papers, and corporate 
bonds.   
(b) Legislative and regulatory framework 
Banking services 
55. The main legislation on banking is contained in Law No. 9,662 of 18 December 2006, which 
entered into force in June 2007.  The Law pr ovides the criteria on establishment, licensing, 
organization, management, and liquidation of ba nks.  The Bank of Albania is charged with 
implementing this Law, and is also the supervisory body. 
56. The banking system comprises the Bank of Albania,  whose status is defined in Law No. 8,269 
of 23 December 1997 "On the Bank of Albania", as ame nded;  banks;  and branches of foreign banks.  
Banking activities may be carried out by:  a bank with legal seat in Albania, licensed by the Bank of 
Albania;  or a branch of a foreign bank licensed by the Bank of Albania.  In the first case, the bank 
may be a subsidiary of a foreign bank.  Banks must  be established as joint-stock companies with legal 
                                                      
27 Bank of Albania (2009d). 
28 Albanian Financial Supervisory Authority (2009b). 
29 Albanian Financial Supervisory Authority (2009b). Albania WT/TPR/S/229/Rev.1 
 Page 93 
 
 
seat in Albania, or using State capital.  Branches of foreign banks must be registered in accordance 
with commercial law provisions.  Locally establis hed banks have the right to open branches or 
agencies in or outside the territory of Albania,  as well as representative offices outside Albania.  
Foreign banks have the right to ope n one or more branches, or agenci es inside Albania, for which they 
must obtain a single licence from the Bank of Albania.  For the purposes of supervision, all branches 
of a foreign bank are considered as a single branch.   
57. Each shareholder must provide information on the sources of his/her initial capital paid for 
the establishment of the bank.  A bank may not grant lo ans or issue guarantees directly or indirectly to 
a person for the acquisition of its own shares or for the shares of another company in which the bank 
owns 20% or more of the capital. 
58. A licence must be obtained from the Bank of Albania to engage in banking activities.  
Licences have no expiry date and are not transf erable.  The licensing process is regulated by 
Supervisory Council of the Bank of Albania Decisi on No. 14 of 11 March 2009 (Regulation on the 
licensing of banks and branches of foreign banks).  Although no economic needs tests are applied, the 
Bank of Albania's licensing policy has as one of its aims that the licensing process contribute to 
economic development.  The Bank of Albania determines through by-laws the amount of the 
minimum initial capital.  In 2009, the minimum cap ital requirements applied both to banks established 
in Albania and branches of foreign banks was lek 1 billion (€7.5 million).  The Bank of Albania must, 
within three months of the date of the acceptanc e of the application, grant or refuse the initial 
approval for a licence and notify the applicant of it s decision in writing.  No shareholder may own 
more than one third of the capital or shares with vo ting rights of a bank.  Exceptions may be made 
where a foreign bank establishes a branch of subsidiary  or acquires ownership of the shares in a bank.  
The Bank of Albania must be satisfied that a fore ign bank applying for a licence to open a branch is 
supervised on a consolidated and sustainable basis by the respective foreign supervisory authorities.  
The bank or the branch of a foreign bank must, within 12 months of approval of its licence, register as 
legal person and pay the initial minimum capital.  If all the requirements set by the law are met, the 
Bank of Albania grants a licence to commence banking activities;  no discretionary criteria or 
economic needs test are used.  However, by law, the Bank of Albania has the right to set additional 
requirements and criteria to obtain a licence.  The de cision to grant a licence must be published in the 
Official Journal  of the Republic of Albania and the Official Bulletin  of the Bank of Albania, as well as 
in one or more of the national newspapers. 
59. Deposits in the banking system of up to lek 2. 5 million are insured by the Albanian Deposit 
Insurance Agency (ADIA), established in October 2002, through Law No. 8,873 of 29 March 2002 "On Deposits Insurance", as amended by Law No. 10,106 of 30 March 2009 (amendments and 
addenda to Law No. 8,873).  The authorities noted that the amendment aims at strengthening ADIA's 
role and approaching its legal framework to th e European Union's Depos it Guarantee Directives.
30  
The amendments (Article 5 of Law No. 10,106) al so increased the coverage of insured deposits from 
lek 700,000 (€5,400) to the current  amount of lek 2.5 million (€19,250)  per bank and depositor, and as 
result the share of fully covered depositors rose to ove r 90% of total depositors in the banking system.  
A bank or branch of a foreign bank may not carry out banking activity without acquiring a certificate 
of deposit insurance, in accordance with the provisions of the Law. 
60. A bank requires prior approval in writing from the Bank of Albania to:  change its name or 
statute;  finalize agreements with third parties for the exercise of functions and duties for the 
administration and management of th e bank;  carry out financial activ ities not included in the annex to 
its license;  increase its capital through non-liquid a ssets;  repurchase its own shares or those of its 
                                                      
30 Albanian Deposit Insurance Agency online info rmation. Viewed at: http://www.dia.org.al/eng/de 
fault.shtml. WT/TPR/S/229/Rev.1 Trade Policy Review 
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connected persons, directly or through anothe r person;  decrease the capital;  open a branch, 
subsidiary or representative office outside Albania;   invest over 15% of its regulatory capital in the 
capital of a legal person who does not carry out banki ng activity;  transfer ownership of a qualifying 
holding or the control of the bank to third parties;  appoint administrators,  increase the percentage of 
a shareholder with qualifying holding exceeding 20%,  33% or 50% of the bank's capital or its voting 
rights or to such degree that the bank becomes its su bsidiary;  distribute its capital;  open a branch or 
agency within Albania.31 
61. A licence may be revoked by the Bank of Albania, if:  it is so requested by the licensed bank 
or the foreign bank on behalf its branch;  there are breaches of the Law, or the bank or the branch of 
the foreign bank does not possess and is not able to provide sufficient own funds, and as a result, is no 
longer able to be relied on to fulfil its obligations  towards its creditors;  the licence was acquired on 
the basis of false information;  the bank or th e branch of a foreign bank has not commenced its 
activity within six months from the grant of the li cence or has suspended activities for longer than six 
months.  A bank or branch of a foreign bank li censed to carry out banking and other financial 
activities as defined by the Law, may not take part directly in industrial or commercial activity, or 
undertake non-banking services. 
62. Foreign bank branches must invest part of thei r initial endowed capital in at least one of the 
following assets:  a deposit in the Bank of Albania at an interest rate determined in agreement 
between the parties;  securities issued by the Gove rnment of Albania or the Bank of Albania;  or 
assets bearing low risk, in accordan ce with regulatory acts of the Bank of Albania.  The authorities 
indicated that this is for precautionary reasons and that the same level of endowed capital is required 
of domestic banks.  There are explicit exposure limit ations.  A bank's exposure towards a customer or 
group of customers equal to or larger than 10% of regulatory capital (large exposures) must be 
notified to the Bank of Albania;  total larg e exposures may not together exceed 700% of the 
regulatory capital.  A bank's exposure towards a single customer may not exceed 20% of the regulatory capital;  or 25% in the case of the parent co mpany or a subsidiary of the bank or the parent 
bank.  A bank's exposure towards connected persons may not exceed 10% of its regulatory capital.   
63. Banks and branches of foreign banks must main tain deposits with the Bank of Albania, as 
stipulated in the Law No. 8,269.  The level of mi nimum reserves (mandatory reserves) is determined 
by the Bank of Albania.  Banks are obliged to publ ish regularly the terms and conditions of interest 
rates pertaining to deposits, credits, and loans, as well as the methodology of the their calculation.  
The law attaches some conditions and limitations to  capital investments.  Banks may invest in the 
purchasing of shares of commercial companies that are not banks or financial institutions, or may be a 
partner of a commercial company, to an amount not  exceeding 10% of the capital of that company; 
the investment may not at any time exceed 15% of  the regulatory capital of the bank.  The maximum 
allowed investment of a bank in several commerci al companies that are not banks or financial 
institutions or the maximum holdings as a partner in such commercial co mpanies may not exceed 
60% of the regulatory capital of a bank. 
64. The Bank of Albania is charged with the supe rvision of banks.  For bank supervision 
purposes, it has the right to require information from commercial companies with qualifying holdings 
in banks and commercial companies in co-ownership with the banks.   Banks and branches of foreign 
banks must inform the Bank of Albania on cont inuous basis the changes of the names of the 
shareholders and their participation in the capital of  the bank or foreign bank.  Within its supervisory 
capacity, the Bank of Albania may apply corrective measures toward a bank or branch of foreign 
bank, including preventive measures, cease and desist orders, sanctions, intervention, revocation of a 
                                                     
 
31 The law defines "qualifying holding" as a direct or indirect holding in a legal person that represents 
10% or more of the capital or of the voting rights.   Albania WT/TPR/S/229/Rev.1 
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licence, or procedures for compulsory liquidation.   Preventive measures generally imply submitting a 
warning to a bank with respect to the need to appl y corrective measures to observe standards or rectify 
breaches of the Law;  the bank has then 30 days to submit a plan with corrective measures to the Bank 
of Albania.  In the case of cease and desists orders, the bank must submit to the Bank of Albania a 
detailed report on the measures taken to rectify the br eaches, within time-limits defined in the issued 
order.  In the case of breaches of risk management rules (e.g. solvency or liquidity requirements), the 
bank must draw up a plan to meet the required solv ency limit.  The bank may also be required to 
increase the initial minimum capital through new inv estments, or by retaining profit, to suspend 
payment to particular legal persons;  and to ta ke measures to lower operational costs or suspend 
certain banking and financial activities.   
65. In the case of banking and financial conglom erates, the Bank of Albania exercises the 
supervision on the basis of financial conso lidated reports as well as supervision reports. 
66. The Bank of Albania maintains a Credit Regist ry, an electronic database on banking system 
borrowers, which started in January 2008 with th e purpose of assessing the credit risk of the data 
providers.  The Registry is regulated by Cent ral Bank Regulation No. 38 of 18 July 2007 on 
(Operation of a Credit Registry), which entered into force on 1 January 2008.32  Banks have entered 
into the Registry their active loan portfolio, and must provide daily updates on new loans, and 
monthly updates on their loan repayment status.  In formation is retained for five years.  As at 
September 2009, over 200,000 loans were recorded, as well as data on borrowe rs, connected persons, 
and collateral.33  Data on borrowers, which include informa tion on loans taken over the two last years, 
their amount, repayment, arrears and collateral, is us ed by banks when making loan decisions.  This is 
intended to reduce the risk of extending non-performing loans. 
67. The Bank of Albania' Regulation on Credit Risk  Management, last ame nded on 10 June 2009, 
provides guidance with respect to credit risk manage ment in order for the Bank to minimize possible 
losses from loans and other comparable assets.  It defines the criteria, categories, and methods for 
classification of loans and other bank assets, calcul ating levels of provisions to cover possible losses 
given the inability to regain the full value of loan s and other assets.  The regulation classifies credits 
in five categories:  standard;  special mention;   substandard;  doubtful;  and loss.  The first two 
categories make up the group of quality loans;  the three latter categories make up the group of problem loans.
34  Provisions rates for losses on loans are of  1% for standard loans, 5% for special 
mention loans, at least 20% for substandard loans;  not less than 50% for doubtful loans, and 100% for 
losses.  The writing off of losses is by decision of the Board of Directors when the loan is classified as 
loss and has not been paid for more th an 365 days as been classified as such. 
                                                      
32 For the text of the regulations see Bank of Albania online information. Viewed at:  
http://www.bankofalbania.org/ preview doc.php?crd=3252&ln=2&uni=200902241242405888. 
33 Bank of Albania online information.  Viewed  at:  http://www.bankof albania.org/web/Credit 
_Registry_3306_2.php. 
34 Standard credits are all loans that do not fall in any of the other categories.  Special mention credits 
are loans where the borrower's financial condition is eval uated as good but with possible future weaknesses, 
and/or the principal or interest is past due from 1 to 30 days from the maturity date (non-instalment loans) and 
from 31 to 90 days (instalment loans).  Substandard credits are those where the financial condition of the 
borrower is evaluated as unsatisfactory, or the loan is not considered well-secu red, or the principal or interest is 
past due from 31 to 90 days from the maturity date (non-instalment loans), or from 91 to 180 days (instalment 
loans).  Doubtful credits are those wher e the borrower will not be  able to repay its total obligations and might 
go bankrupt and the principal or interest is past due for a period from 91 to 180 days from the maturity date (non-instalment loans) or from 181 to 365 days (instalment loans).  Losses are credits where the borrower is 
unable to meet principal and interest repayment because it has gone bankrupt or is going through a liquidation 
process and the principal or interest is past due for more than 181 days from the maturity date in the case of non-instalment loans or more than 365 days for instalment loans. WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 96 
 
 
68. Under the Banking Law, a bank must maintain re gulatory capital in an adequate level for the 
purposes of carrying out its activities;  the ratio of  regulatory capital adequacy may not, by law, be 
less than 8%.  Prudential regulations are containe d in the Bank of Albania's Regulation on Capital 
Adequacy, Decision No. 58 of 5 May 1999, as ame nded most recently by Supervisory Council 
Decision No. 63 of 29 August 2008.  In accordance with the regulation, the minimum capital 
adequacy ratio was increased to 12%, although the aut horities indicated that in practice this is higher.  
This ratio is risk-weighted, with assets at no risk (e.g. cash and claims on the Central Bank and the Governments of Albania and OECD countries) weighted  with a 0% weighting rate;  assets at low risk 
(e.g. short-term claims on banks and financial institutions operating in Albania or OECD countries, 
certificates of deposit or deposits in banks of OECD  countries) weighted at 20%;  assets at medium 
risk weighted at 50% (e.g. mortgage loans,  fi nancial leasing operations);  and assets at high risk, 
weighted at 100% (e.g. claims of over-1-year ma turities on banks operating in Albania or non-OECD 
countries) or at 150 % (credit portfolios that exceed certain thresholds; unhedged portfolios etc.).   
Insurance services 
69. There are currently ten insurance companies opera ting in Albania:  seven are involved in the 
provision of non-life insurance and two in life insurance;   there is one composite insurer.  Three of the 
companies have foreign participation (from EU c ountries) exceeding 50% of initial capital.  The 
authorities noted that 93% of premiums have been  generated by non-life insurance.  They also 
indicated that there is significant potential for expansion of the sector. 
70. The Albanian Financial Supervisory Authority (AFSA), a public independent institution that 
reports to the Albanian Parliament, is responsible for the licensing, regulation, and supervision of the 
non-banking financial system, including insurance and the sector's operators.  The AFSA also 
supervises the securities market and its operators, private supplementary pensions market and its 
operators, and other non-banking financial activities.
35  All these activities were integrated under the 
AFSA in October 2006, unifying the activities of the Insurance Supervisory Authority (ISA), the Albanian Securities Commission (ASC), and the In spectorate of Supplementary Private Pensions 
Institutions (ISPPI).  This was done with the suppor t of the World Bank, which continues to provide 
support in relation to the improvement of the re gulatory framework and the functioning of AFSA. 
71. The AFSA's operating expenditures are covered by  the monthly contributions of the insurance 
companies.  Contributions are:  to up to 1.5% of gross premiums written, for the non-life insurance 
companies, or risks and elements of expenses of sums gained during the financial year, for life 
insurance companies. 
72. Insurance services are regulated by Law No. 9,267 of 29 July 2004, "On the Activity of 
Insurance, Reinsurance and Intermedia tion in Insurance and Reinsurance".
36  The law covers foreign 
and local insurance and re-insurance undertakings, in termediaries in insurance and reinsurance, and 
branches of foreign companies exercising their activ ity in Albania, as well as operations connected 
directly to the insurance and rein surance activity.  Under the law, insurance companies established in 
Albania and branches of foreign companies may carry  out only insurance and reinsurance activities.  
Branches of foreign insurance companies receive national treatment.   
73. Risks that occur in Albania must be insured lo cally. Direct insurance with a foreign company 
outside the territory of Albania for a risk in Albani a is only allowed if foreseen in an international 
                                                      
35 AFSA online information.  Viewed at:  http://amf.gov.al/pershkrim.asp?id=1. 
36 The various Council of Ministers decisions, regulations, and guidelines governing the insurance 
sector are listed (with a summary of their content) in Albanian Financial Supervisory Authority (2009a), Appendix B. Albania WT/TPR/S/229/Rev.1 
 Page 97 
 
 
agreements to which Albania is a party or, if not pr ovided in Albania, it is authorized by AFSA.  The 
exception to this is the insurance of  risks connected to sea or air tran sport, or when the risk is not 
covered by the local company or the branch of th e foreign company, in which case insurance can be 
contracted with a foreign company, prior authorization of AFSA. 
74. Insurance companies must be established as joint-st ock companies, with their seat in Albania.  
They must have a guarantee fund equivalent to one thir d of the required level of solvency margin (net 
assets).37  The guarantee must be deposited in a bank in Albania.  Insurance companies must also 
maintain an additional fund to cover functioning an d administration expenditures, which must be of at 
least 5% of the guarantee fund.  Insurance compani es licensed to provide third-party liability, motor 
vehicle insurance must become members of th e Albanian Insurance Bureau (AIB) before 
commencing operations.   
75. An insurance company may establish as a domest ic company or as a branch of a foreign 
company;  a licence from the AFSA is required.  Foreign companies may also establish commercial 
presence in Albania by opening a representative offi ce.  Insurance companies may carry out only the 
classes of insurance activity covere d by their licence;  a company ma y be licensed as:  an insurance 
company, or branch of a foreign company;  a reinsu rance company, or branch of a foreign company;  
or an insurance and reinsurance company, or branch  of foreign insurance a nd reinsurance company.  
Licences are unlimited in time, not transferable, a nd not purchasable.  A licence is required for every 
insurance class;  a company that wishes to extend its  activities must obtain a licence for this purpose.  
The AFSA must grant (or refuse) a licence within six months of receipt of the licence application.  A  
business plan for the initial three years must be provi ded (for the first seven years in the case of life 
insurance).  Following preliminary approval, the comp any must register as an insurance company at 
the Tirana First Instance Court.  
76. Insurance companies must start operating within six months of being granted a licence, 
otherwise the licence is withdrawn.  In order to ca rry out an insurance activity  outside the territory of 
Albania, an insurance company re quires prior AFSA approval.  Merger or division of an insurance 
company requires AFSA approval. 
77. The branch of a foreign company must keep a separate account for the activity it carries out in 
the territory of Albania, and preserve all the documents  pertaining to this activity.  The administrator 
of the foreign company branch must be a resident of Albania, with not less than three years of 
experience in the management of insuran ce companies or financial institutions.   
78. An insurance company may not invest more than  10% of its capital in one or more non-bank 
legal persons, without prior AFSA  approval.  AFSA approval is not required for the opening of a 
domestic branch, but it must be notified. 
79. Intermediary activity may be carried out by ag ents or companies of agents and brokerage 
companies.  A licence from AFSA is required.  Companies of agents must be set up as joint-stock 
companies with their seat in Albania.  A licensed agent or company of licensed agents may carry out 
the activity on behalf of only one insurance compan y or branch of a foreign company, except when 
foressen otherwise in the contract between the ag ent or the agents and th e insurance company or 
branch of a foreign company.  An agent or company of agents is not allowed to carry out intermediary 
activity in both life and non-life insurance.  Broke rage companies must be established as joint-stock 
companies with seat in Albania, and licensed by AFSA  to carry out intermediary activity in insurance 
                                                      
37 There are also requirements for the size of the guarantee fund, depending on the type of insurance 
activity;  between lek 185 and lek 615 million for non-life insurance classes;  lek 370 million for life insurance; 
and lek 615 million for reinsurance companies. WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 98 
 
 
and reinsurance;  they must have a minimum capita l of lek 5 million.  Brokerage activities may also 
be carried out by banks, with approval from the Bank of Albania and a licence from the AFSA.  
Securities services 
80. The securities market is regulated by Law No. 9,879 of 21 February 2008, "On Securities", 
which entered into force in March 2008.  It was dr afted with a view to adapting Albanian legislation 
to European standards.38  This law regulates the manner and conditions for issuance, trading, 
registration, identification, and performance of tran sactions in securities, and persons and individuals 
authorized to perform securities transactions;  the conditions for the organization of the public trading 
of securities;  and the protection of investors and the securities-right holders.  The Law also applies to 
the regulation of investment services.  The law cove rs securities, derivatives, and option and futures 
contracts.  The AFSA is the securities market regulatory and supervisory body. 
81. Law No. 8,080 of 1 March 1996, "On Securities", which was repealed by the 2008 law, paved 
the way for the establishment of the Tirana St ock Exchange (TSE) in May 1996.  The TSE, a 
self regulatory organization and Albania's first stoc k exchange, was established as a department of the 
Bank of Albania (BoA) with the aim of spinning it o ff after a transitional period.  In July 2002, the 
TSE was spun-off from the BoA and continued its ac tivity as a stand-alone institution, obtaining its 
licence to operate as an organized market on financial instruments in 2003.  The TSE operates as a secondary market and is organized as an order-dri ven market, which uses a manual trading system 
with physical presence of licensed dealers on the trading floor.
39  Securities prices on the trading 
sessions are set according to the "single price method";  trading is on Tuesdays and Thursdays.  The 
eligible tradable instruments are shares, government  papers, and corporate bonds. All transactions at 
the TSE are conducted in lekë.  In practice, and as noted by the authorities, the securities market is 
dominated by trading in the primary and secondary ma rkets of Government debt instruments.  There 
are no listed companies. 
82. The TSE adopted new rules in 2008, as a result of  the enactment of the new law on securities.  
The new regulations aim at enhancing investor prot ection and market transparency, reducing systemic 
risk, and distributing information equally among mark et participants.  According to Law No. 9,879, 
securities exchanges must be establis hed as joint-stock companies.  The incorporation capital of a 
stock exchange must be at least lek 20 million. 
83. Only brokerage companies that are members of the stock exchange may participate in stock 
exchange trading.  Membership in the TSE is open to brokerage companies licensed by the AFSA, 
and banks that are joint-stock companies licensed by the Bank of Albania to conduct financial 
activities envisaged in the law "On Banks", and licen sed by AFSA to perform securities activities.  
AFSA licences to conduct securities transactions are valid indefinitely.  The TSE currently has five 
members:  three commercial banks (Italian-Al banian Bank; Raiffeisen Bank, and National 
Commercial Bank) and two privately owned br okerage houses (Balkan Group and Triumf Group).40  
A bank may have shares in only one brokerage company.  A brokerage company or a shareholder of a 
brokerage company may not have either shares or  business stakes in another brokerage company.  
Brokerage companies must have an initial capital of between lek 6 million and lek 75 million, in 
accordance with the types of activities they pursue.   
                                                      
38 The respective EU Directives are:  Dir ective 2004/39/E,  Directive 2003/71/EC, 
Directive 2003/6/EC, and Directive 2003/124/EC. 
39 In the order-driven model the brokers agree the pr ice and quantity of the traded securities.  Brokers 
called "market makers" quote bid and ask prices on specific securities, creating a permanent market. 
40 TSE online information.  Viewed at:  http://www.tse.com.al/english/tregtimi.php. Albania WT/TPR/S/229/Rev.1 
 Page 99 
 
 
84. Treasury bills and government bonds can be purchased in the primary market by banks, 
financial institutions, and institutional investors,  and can be sold and purchased in the secondary 
market by legal entities and individuals.  Commercial notes can be purchased by legal entities and individuals in the primary market.  Securities may be issued through a public or private offer in 
Albania or abroad.  A foreign issuer may issue securities in Albania by a public offering only through 
engaging an authorized company to act as an i ssuing agent.  The authorized company may be a 
brokerage company or a bank that has received an AFSA licence to perform securities transactions;  
as noted above, there are currently five such compani es.  If securities are offered by a private offering, 
the issuer must list the names of the potential in vestors to be invited as well as the form and the 
amount of their investments. 
(iv) Transport services 
85. According to both governmental and external sources, the modernization of Albania's 
transportation infrastructure is central to sustaini ng trade and private-sector development and, at a 
more general level,  economic growth and investment.  Part icular challenges identified, include 
upgrading the quality and reach of the road system (including to rural areas within Albania and 
neighbouring countries) and expanding th e seaports and regional airports.
41  
86. The main strategy document for the transport sect or is the National Transport Plan, approved 
in 2006. In addition, the National Strategy for De velopment and Integration (NSDI) sets out the more 
general medium- and long-term plans for the sector.  By 2013, the objectives are to:  complete the 
Durrës-Morine highway as well as highways running fro m the north to the south of the country and 
from the east to the west;  and to upgrade the in frastructure at Durrës Port to include a passenger 
terminal, the construction of a new quay, and cargo handling facilities.   
87. Albania has taken GATS commitments, with varia tions across modes of supply, in the areas 
of maritime, air, and road transport services, and services auxiliary to all modes of transport.  MFN 
exemptions apply to road and air transport.42   
88. The EU-Albania Stabilization and Associa tion Agreement (SAA) has a transportation 
component with substantial obligations by the parti es in international maritime transport and inland 
transport (road, rail, and combined transport).43  In addition, Albania has a general obligation to adapt 
its laws and any other rules on all forms of transport to those of the EU, to the extent that they serve liberalization purposes and market access, and fac ilitate the movement of passengers and goods.  The 
SAA also foresees cooperation between the parties, inter alia,  to restructure and modernize Albania's 
transport system and reinforce regional links. 
(a) Maritime transport 
89. The Directory of Maritime Transport Policy, under the remit of the Minister of Public Works, 
Transport and Telecommunications, has responsib ility for policy development in the maritime 
transport sector.  An organizational overhaul of the maritime transport sector, in the process of being 
finalized, involves the creation of a Maritime Admini stration that will have competence for all aspects 
                                                     
 
41 See for example, World Bank online information. Viewed at: http://go.worldbank.org/ 
9JRAQLVG50;  EBRD online information.  Viewed at:  http://www.ebrd.com/about/strategy/country/ 
albania/index.htm;  and Council of Ministers (2008). 
42 WTO document GATS/SC/131, 22 November 2000. 
43 SAA rules on inland transport are set out in Protocol  5 to the Agreement.  As noted in Article 59 of 
the SAA these rules are particularly designed to ensure unrestricted road transit traffic across Albania and the 
EU as a whole, the effective application of the principle of non-discrimination, and progressive harmonization of Albanian transport legislation with that of the EU. WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 100 
 
 
of maritime transport, that be under the authority of  the Ministry.  It will include a General Maritime 
Directory, responsible, inter alia, for the overall coordination and leadership of the Maritime 
Administration, and for the State Authority of Ports Security, the Harbour Master's office, and the Register of Albanian Water Craft, and the Seafarers Register. 
90. The main laws relating to maritime transport are:  the Albanian Maritime Code (Law 
No. 9,251 of 8 July 2004);  Port Authority Law (Law No. 9,130 of 8 September 2003);  and the Law 
for the Security of Ships and Port Facility (Law No. 9,281 of 23 September 2004).
44  Cabotage is 
limited to Albanian flagged ships, unless permitte d by the authorities under certain conditions set out 
the Albanian Maritime Code (Article 22):  if recipr ocal treatment is offered by the ship's respective 
flag state;  if the activity is for the purposes of scientific research or environmental protection;  or if it 
is in the State's interest.  The authorities noted th at there is currently no cabotage between Albanian 
ports.  
91. Albania has made GATS commitments on intern ational maritime transport services of  
passengers and freight (cabotage is specifically exclud ed);  rental of vessels with crew;  maintenance 
and repair of vessels;  and supporting services for maritime transport.  Albania has scheduled no 
limitations on market access and national treatment for modes 1 to 3.  In accordance with the 
Maritime Model Schedule, Albania has scheduled a dditional commitments with respect to the use of 
certain port services to international mar itime transport suppliers on reasonable and 
non-discriminatory terms.45    
92. SAA rules on right of establishment do not apply to maritime cabotage services and inland 
waterways transport services.  However, the SA A does contain rules on international maritime 
transport:  the parties are obliged to grant unrest ricted market access on a commercial basis.  They 
have made commitments:  not to introduce cargo- sharing agreements in any future bilateral 
agreements with third countries;  to abolish all obs tacles that could have restrictive or discriminatory 
effects on the free supply of international maritime transport services;  and to grant MFN treatment to 
ships operated by nationals or companies of the other parties in the areas of access to ports open to 
international trade, the use of infrastructure and a uxiliary maritime services at ports, fees and charges, 
customs facilities, and the assignment of berths  and facilities for loading and unloading.   
93. Albania's principle port Durrës, accounts for around 80% of cargo loaded and unloaded.  The 
port infrastructure is owned by the Government and the port is managed by the Durrës Port Authority, established under the Port Authority Law (No. 9, 130 of 8 September 2003).  The Government owns 
100% of the shares of the Durrës Port Authority:  the objective is for it to operate on a commercial 
basis.  The authorities confirmed that goods handling is carried out by three private companies selected by public bid.  Other port services are also provided on a commercial basis. 
94. Other government-owned ports are Vlora, Sara nda, and Shengjin, which are all joint-stock 
companies, established under Law No. 9,901 of 14  April 2008, with 100% of the shares being 
controlled by the Ministry of Economy, Trade and En ergy.  The authorities indicated that all services 
at the Vlora port are provided by private companies.  At Saranda and Shengjin, some of the operations 
related to goods handling are carried out by the Port  Authority, however a privatization initiative is 
under way.    
                                                     
 
44 Available in Albanian only. 
45 These port services are:  pilotage;  towing and tug assistance;  provisioning, fuelling and watering;  
garbage collecting and ballast waste disposal;  port capta in's services;  navigation aids;  shore-based operational 
services essential to shop operations including comm unications, water, and electri cal suppliers;  emergency 
repair facilities;  and anchorage, berth, and berthing services. Albania WT/TPR/S/229/Rev.1 
 Page 101 
 
 
95. In addition, two ports are ope rated under 35-year concession ag reements;  they are mainly 
used for the transport of processed fuel.46   
96. According to the authorities, there are a number of planned and ongoing projects to 
develop Albania's port infrastructure, with assist ance from external donors.  Main projects at the 
Durrës Port include the building of new berths an d a passenger terminal with capacity to handle 
800,000 passengers per year.  New ferry and cargo termin als are to be created at the Vlora port.  At 
Saranda, the intention is to relocate cargo ship ments to a nearby military bay and accommodate 
cruiser ships at the port.  There are also plans to  enhance the cargo capacity of the port at Shengjin.  
This is part of the strategy to develop trade and tr ansport links in the northern part of the country as 
well as neighbouring countries.  The authorities noted that spending for these projects, both from the 
Albanian Government and external donors, is in  the region of €60 million.  They confirmed that 
selection of project and building companies will be through an open international bidding process.  
(b) Air transport 
97. The Directory General of Civil Aviation (DGCA)  has been responsible for the operation and 
safety of airlines and airports in Albania since the 1990s.  The DGCA is a Government agency under 
the portfolio of the Minister of Public Works,  Transport and Telecommunications.  The National 
Agency of Air Traffic (NATA), a government-owned  joint-stock company, is responsible for air 
traffic control.  Organizational changes under way should lead to the creation of a Civil Aviation 
Authority.  Albania has been a member of IC AO since 1990 and is signatory to a number of 
international air transport conventions and agreements.47 
98. A new air code was approved by Parliament in 2008 (Law No. 10,040 of 22 December 2008).  
The aim is to bring Albania's legislation into conformity with the EU acquis  and ECAA 
commitments, although the European Commission has noted that some further amendments to the 
code are needed.48 
99. Albania has scheduled GATS commitments for aircraft repair and maintenance services.  It 
has scheduled no limitations for market access or national treatment for the first three modes of 
supply.  It has taken an MFN exemption for the sale and marketing of air transport services and computer reservation systems.  This is related to market access granted on a reciprocal basis to countries with which Albania has a bilateral air services agreement.
49  The authorities noted that no 
foreign companies currently provide aircraft repair and maintenance services in Albania. 
100. Albania has one international airport, Tirana  International Airport Nënë Tereza, which 
handles both cargo and passenger transport.  Five ot her airports in Albania (Gjirokastër, Korçë, 
Kukës, Sarandë and Shkodër) only ser vice domestic charter flights.   
101. Until 2005, Tirana International Airport was ow ned and managed by the State.  In 2005, 
following an international tender process, a 20-year  concession for the management and operation of 
the airport, including ground-handling services, was granted to a private consortium, Tirana 
International Airport shpk (TIA).50  TIA was granted exclusivity for international flights, and has the 
                                                      
46 These concession agreements are governed by:  Law No. 9,298 of 11 July 2004, and Law 
No. 9,231of 13 May 2004. 
47 DGCA online information.  Viewed at:  http://www.dgca.gov.al/membership%20and%20 
participation%20in%20international%20%20organizations.doc. 
48 European Commission (2009a). 
49 WTO document GATS/SC/131, 22 November 2000. 
50 The consortium comprises HOCHTIEF AirPort GmbH (HTA);  DEG Deutsche Investitions-und 
Entwicklungsgesellschaft and the Albanian-America En terprise Fund.  Viewed at:  http://www.tirana-
airport.com. WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 102 
 
 
right to extend the concession agreement for a furthe r ten years.  As a result, the opportunity to 
develop Albania's minor airports for regional traffic is limited for some time.  This notwithstanding, 
the authorities indicated that feasibility studies for the airports at Korçë and Sarandë have been 
undertaken, as well as an assessment of tourism development potential. 
102. At end 2009, 14 airlines were opera ting out of Tirana Internationa l Airport.  Passenger figures 
have increased significantly;  from 408,300 passengers in 2000 to 1,267,041 by 2008.  The volume of 
cargo shipped remained relatively constant over the same period, fluctuating between 1,600 and 
2,000 tonnes per year.  Cargo figures are expected  to increase following the completion of a new 
cargo terminal in March 2008. 
103. There are two registered Albanian air operators:  Albanian Airlines (which operates four 
aircraft), and Belle Air (three aircraft);  both air lines are privately owned.  The authorities noted that 
foreign airline companies are not allowed to offer cargo or passenger air services within Albania.  To 
date there has been no official analysis of th e state of competition in the air transport sector. 
104. Albania has bilateral air services agreements in  force with:  Austria (1993);  Belgium (2002);  
Bosnia and Herzegovina (2004);  Bu lgaria (renewed 2002);  China (1972);  Croatia (2005);  Egypt 
(1995);  FYROM (2005);   Germany (1992);  Gr eece (1977);  Hungary (1958);  Italy (1992);  
Macedonia (renewed 1998);  the Netherlands (1996);  Pakistan (1970);  Poland (1954);  Romania 
(1974, amended 1995);  Russia (1996);  Slovenia (1992);  Switzerland (2007);  Turkey (2004);  
Yugoslavia (renewed 2003); the United Kingdom  (1994);  and the United States (2004).51  T h e  
authorities indicated that most of the air services agre ements with countries that are not parties to the 
ECAA follow the Bermuda I or Bermuda II models. 
105. Albania has signed (June 2006) and ratifie d (December 2006) the European Common 
Aviation Area Agreement (ECAA).52  The authorities anticipated that by the end of March 2010, 
Albania would complete the first of two phases of implementation of the agreement.  Once the ECAA 
enters into force it will extend the rules of the EU  single aviation market (EU member States and EEA 
signatories:  Norway and Iceland) to Albania,  as well as Bosnia Herzegovina, Croatia, FYROM, 
Serbia, and Montenegro.  These rules include fift h and seventh freedoms as well as cabotage (eighth 
and ninth freedoms) to airlines of signatory countries.53  Ownership is based on the community of 
interest principle.54  There are no restrictions on passenger capacity, the setting of tariffs, or the 
number of airlines that can be designated.55   
                                                      
51 DGCA online information.  Viewed at:  http://www.dgca.gov.al/membership%20and%20 
participation%20in%20international%20%20organizations. doc, and information provided by the authorities. 
52 ECAA Agreement.  Viewed at:  http://eur-lex.europa.eu /LexUriServ.do?uri=CELEX:22006 
A1016(01):EN:HTML. 
53 As defined by the International Civil Aviation Organization (ICAO), fifth freedom is the right "to 
carry freight and passengers between two countries by an airline of a third country on a route with 
origin/destination in its "home country";  seventh freedom is the right "to carry freight and passengers between 
two points by an airline of a th ird country on a route with no connection with its home country". 
54 Community of interest is defined by the ICAO as being present whenever "a party would accept a 
foreign designated airline to operate the agreed servi ces under the condition that substantial ownership and 
effective control is vested:  (a) in one or more countries that are parties to the agreem ent or by any one or more 
of the parties themselves, i.e. a joint operating organization or a multinational carrier created by intergovernmental agreement;  or (b) in  one or more countries that are not necessarily party to the agreement but 
are within a predefined group with a "community of interest". 
55 ECAA Agreement. Viewed at:  http://eur-lex.e uropa.eu/LexUriServ/LexU riServ.do?uri=CELEX: 
22006A1016(01):EN:HTML. Albania WT/TPR/S/229/Rev.1 
 Page 103 
 
 
(v) Professional services 
106. In 2009, Albania introduced an overarching law "On Regulated Professions in the Republic of 
Albania" (Law No. 10,171 of 22 October 2009), to dete rmine the criteria for the exercise of certain 
professions as well as to protect and guarantee standards.  The law applies to:  medical doctors, 
dentists, pharmacists, nurses, midwives, physiotherap ists, vets, architects, and engineers.  The law 
provides for the creation of professional associations  (Orders) to represent the interests of specific 
professions, and determine the qualifications required in order to practise.  Registration with the 
respective associations is mandatory.  
107. Albania has undertaken commitments on all the professional services in the services sectoral 
classification list (Table AIV.1).  In most cases,  Albania has scheduled no limitations under market 
access and national treatment for modes 1 to 3.  Albania has not signed any mutual recognition 
agreements with respect to professional services.   
(a) Legal services 
108. The organization of the legal profession in Albania is set out in Law No. 9,109 of 
17 July 2003.  The law was amended in 2007 (Law No. 9,795 of 23 July 2007) and in 2008 (Law 
No. 10,047)56, and replaces Law No. 7,287 (1994).  It, inter alia , sets out conditions for entry into the 
legal profession and standards of professional con duct.  It also prescribes the organization and 
functions of the National Chamber of Advocat es, which has regulatory responsibility for the 
profession.  External sources have noted that a ke y improvement introduced by this law was the 
strengthening of the independence of the le gal profession from the Ministry of Justice.57   
109. The National Chamber of Advocates, inter alia,  has responsibility for:  establishing chambers 
of advocates;  granting licences to practice; approvi ng general rules on qualification exams for legal 
practice and training of apprentices;  and preparing the list of advocates who can practise their profession before the courts of the first instan ce, appellate courts, the High Court, and the 
Constitutional Court.   
110. In order to practice law in Albania, Albanian  citizens must have graduated from a law school 
in Albania or an equivalent law school abroad, and must pass a qualification exam for the legal 
profession.  According to the authorities, the Ministry of Education and Science has a procedure to verify the equivalence of foreign degrees. Currently , law degrees are recognized as equivalent from:  
all EU Member States, Switzerland, Norway, the United States, Canada, Japan, and North Korea.   
Advocates must be registered with a chamber of a dvocates.  These chambers are established by the 
National Chamber of Advocates and thereafter functi on independently, but respecting the rules set out 
in the Law, in the Charter of the National Chamber of Advocates, and any decisions by this body.   
111. Foreign citizens may practise law in Albania if they meet the conditions required of Albanian 
citizens, including passing the same qualificatio n examination in the Albanian language.  The 
authorities confirmed that there are no restrictions on the areas of law that foreign citizens licensed in 
Albania may practise, or residency requirements.   
112. Albania has scheduled market access limitati ons specifying that only Albanian citizens-
attorneys-at-law and notaries who reside in Alba nia may render legal services (through modes 1, 3 
and 4).  The same modes of supply are left unbound for national treatment.  The only exception relates to "consultancy on law of jurisdiction wher e the service supplier is qualified as a lawyer and 
                                                     
 
56 This law and its amendments are available in Albanian only. 
57 Central European and Eurasian Law Initiative (2003). WT/TPR/S/229/Rev.1 Trade Policy Review 
Page 104 
 
 
on international law".  In this case, there are no limitations scheduled on market access for modes 1 
to 3 or on national treatment for all modes of supply (Table AIV.1).58   
(b) Accounting and auditing services 
113. The accounting profession is regulated by Law No. 10,091 of 5 March 2009.  Law No. 9,267 
of 29 July 2004, which entered into force on 1 January 2006, sets out the general principles and 
regulations for the preparation of national accounti ng standards, for the purpose of preparation of 
financial statements and book-keeping.  The law mainly regulates accounting for profit-orientated 
entities.  
114. The 2004 law is aimed mainly at private comp anies but also applies to non-profit entities, 
banks, insurance companies, large companies, public  companies, and state entities if they are not 
subject to specific laws and regulations.59  The law requires the use of International Financial 
Reporting Standards (IFRS) for the preparation of the legal and consolidated financial statements of 
public interest entities, and National Accounting St andards (NAS) for the preparation of all other 
financial statements.  The entry into force of  these provisions was postponed until 1 January 2008 due 
to problems with the translation of IFRS and the finalization of National Accounting Standards 
(NAS).  In accordance with the Accounting Law, fina ncial records must be maintained in Albanian 
and expressed in lekë. 
115. Law No. 10,091 of 5 March 2009 obliges all limite d liability companies (sh.p.k.) to appoint 
an authorized accounting expert if they fulfil two of the following three conditions:  have total assets 
as of the year-end balance sheet equal to or in  excess of lek 40 million;  have annual revenue 
generated from the economic activitie s for the applicable accounting period equal to or in excess of 
lek 30 million;  and have an average of 30 or mo re employees for the applicable accounting period.  
The new law also requires the appointment of an accounting expert to audit the annual financial 
statements for all commercial companies that a pply International Financial Reporting Standards, 
regardless of the type of legal entity.  Join t-stock companies that apply National Accounting 
Standards are required to have th eir financial statements audited.60  The law also revised the 
requirements for the auditing of commercial comp anies, previously set out in Law No. 7638 of 
19 November 1992, which was superseded by the new Law on Commercial Companies, No. 9,901 of 
14 April 2008.   
116. The accounting profession in Albania comprises statutory auditors and certified accountants.  
Albanian citizens seeking to qualify as statutory a uditors must pass a set of exams covering five 
disciplines61, and undertake a three-year secondment.  Statutory auditors are independent 
professionals, registered in the Public Register of St atutory Auditors.  They are authorized to carry out 
the statutory audit of individual and/or consolid ated annual financial statements of commercial 
companies, enterprises, and other organizations  when audit is mandated by law (see above) or 
required by their partners or shareholders.  Ce rtified accountants must pass exams covering two 
                                                      
58 WTO document GATS/SC/131, 22 November 2000. 
59 Tiede and Krispenz (2007), pp. 119-130. 
60 Deloitte (2009). 
61 The five exams are:  (a) accounting, financial repor ting, and financial statemen ts analysis;  (b) civil 
law, penal law, commercial and compan y law, and labour law in the Republic of Albania to the extent that they 
relate to the statutory audit of financial statements;  (c) Code of ethics for professional accounts, international 
standards on quality control, international standards on auditing, international auditing practice standards, 
international statements on review engagements, international standards on insurance engagements and other 
international standards issued by the International Federa tion of Accountants (IFAC) and published in Albanian;  
(d) organization, management, and internal control of enterprises, including information systems and computing;  and (e) taxation law in Albania. Albania WT/TPR/S/229/Rev.1 
 Page 105 
 
 
disciplines and have three years of practical expe rience in order to qualify.  The Association of 
Accountants and Financiers of Alba nia (Statutory Auditors), and the Institute of Certified Accountants 
of Albania (Certified Accountants) regulat e the respective professions in Albania. 
117. According to the authorities, foreign citizens seek ing to work as statutory auditors must show 
that they are a member of a recognized association in  their home country and must pass exams related 
to company law and tax law in Albania.  These exam s may be undertaken in Albanian or English.  
The authorities indicated that recognition of the resp ective foreign statutory auditor associations takes 
into account their relation with the International Fe deration of Accountants (IFAC).  Foreign citizens 
seeking to work as certified accountants must prove that they qualified as a certified accountant in 
their home country.  There are no additional requirements. 
118. Albania has committed, under the GATS, to an open regime for the provision of accounting, 
auditing, and bookkeeping services by service provide rs from WTO Members.  It has scheduled no 
market access or national treatment limitations under modes 1 to 3 (Table AIV.1). 
 Albania WT/TPR/S/229/Rev.1 
 Page 107 
 
 
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