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Albanian Times, Vol. I, No. 6, November 19, 1995From: Albanian Times <AlbaTimes@aol.com>The Albanian Times (by AlbAmerica TRade & Consulting International) DirectoryIn this issue:CONTENTS[1] Albanian Parliament Clears Way for Bank Privatizations[2] Albanian Parliament Ratifies Friendship Treaty with Italy[3] Albania to Launch Stock Market[4] Albania's State Deficit Stable in October[5] Farmers Earnings Lowest in Europe, Paper Says[6] Fountain Oil Targets Albania, Russia[7] Large Oil Deposits Discovered in Albania[8] Stock Exchange Opens in Bucharest[9] Albania, Italy Unveil Second Phase of Economic Cooperation[10] Mediterranean Conference to Open in Barcelona[11] East Europe Currency Exchange Rates on November 20[1] Albanian Parliament Clears Way for Bank PrivatizationsAlbania's parliament on November 16 cleared the way for privatisation of the country's banking system, approving legislation that will turn state-owned banks into holding companies. The parliament gave the government until next March to draw up new laws for a full privatisation of Albania's three state-owned banks, promising speedy approval. ``We think the privatisation of such important sectors of the economy should be done by selling to strategic investors and also by offering shares to the citizens, but the state would retain a package,'' Genc Ruli, parliament's finance and economy commissioner, told deputies. The banks have to undergo independent auditing before they are sold in order to determine their financial health. The new laws also empower the government to supervise the banks' credit policy and levels during the privatisation process to ensure safe banking practices. Albania set up a two-tiered banking system in 1992, with the Bank of Albania serving as central bank to the National Commercial bank, the Savings Bank and the Rural Commercial Bank. (Reuter)
[2] Albanian Parliament Ratifies Friendship Treaty with ItalyAlbanian parliament ratified a treaty with Italy calling for wider economic cooperation and joint efforts to fight organized crime, drug trafficking, and illegal immigration. The treaty, ratified on November 16, also includes a provision regulating the immigration of Albanian seasonal workers to Italy.
[3] Albania to Launch Stock MarketAlbania announced plans for a stock exchange in a first step towards creating a capital market. The Tirana government said on November 20 it aimed to launch the bourse next year, with trading expected to start in shares of Albania's newly privatized companies in March. Finance Minister Dylber Vrioni told reporters: "We'll register the companies' shares by February and plan to open the bourse by March. This is the first step towards a capital market." Vrioni said the government was cooperating with international accounting firm Deloitte and Touche to set up a register of shares. Further work would concentrate on creating the structures and regulation of the capital markets, he added. "We are thinking of combining Eastern and Central European experiences with the advanced experience of the West," he said. Vrioni said the first 20 holding companies had been sold to 4,068 shareholders -- 2,700 of them employees -- through a voucher-for-share scheme. He said the government was also satisfied with ongoing bids for 30 more enterprises and said another 25 would hit the market this week. Baki Berberi, the head of the Investment Fund Committee, said it had not licensed any investment funds yet. "More than 50 people have expressed interest but we have not received an official request yet," he said. Vrioni said Rothschild Bank, Greek firm Alfa Financing, Salomon Brothers, Merrill Lynch and a Bulgarian group had requested information on Albanian investment funds. Under current Albanian legislation, a minimum of $20,000 is required to set up an investment fund and foreigners may own no more than 50 percent. (Reuter)
[4] Albania's State Deficit Stable in OctoberAlbania's state deficit remained stable in October with inflation estimated at about 0.7%. The strongest increase in consumer prices, up to 2.5%, was in winter clothing and shoes. Prices for food, drink and tobacco rose an estimated 0.7%. For the last two months of the year, Bank of Albania expects an inflation range between 1% and 1.2%. (Koha Jone, November 19)
[5] Farmers Earnings Lowest in Europe, Paper SaysFarmers earnings in Albania are the lowest in Europe, newspaper Republika said on November 14. The pro capita income amounts to a mere 25-30 percent of the national average earnings of $550. Fifty percent of the labor force in farming earns a mere $165 per year. The most recent statistics show that there are peasant families with monthly earnings as low as $34. The lowest income are mainly in northeastern districts, where the per family land area is smallest, an average of 0.5 hectares. Peasants with highest earning are those on the coastal plain, in the districts Fier, Durres, Kavaje, Kruje, Lac, Lezhe, and Tirana as well as Shkoder in the north. The annual pro capita income amounts to $170. About 40 percent of peasant families are forced to find work outside agriculture. Despite the relatively low income, the majority of farmers feel economically well placed, Agriculture Ministry officials say.
[6] Fountain Oil Targets Albania, RussiaFountain Oil has targeted the former Soviet-bloc world for its oil and gas projects, cutting deals in difficult business climates like Albania, Russia and Ukraine. The company boasts offices in Houston and Oslo, London and Los Angeles. Not bad for a company with 15 employees and revenues of only about $610,000 for the first nine months of its fiscal year. Fountain Oil, which sports one of the best ticker symbols in the business - - GUSH -- plans to use Western drilling techniques to resuscitate known fields in these cash-strapped countries. "The economics are much better than in the U.S.," said istein Nyberg, the company's chief executive officer. "Of course, there is political risk." Fountain plans to become one of the first Western companies to move into Albania. Last month, Fountain officials announced they had completed negotiations with Albania's state oil company to redevelop the Gorisht-Kocul Field, located near the Adriatic Sea port of Vlora. That field currently is producing 1,200 barrels of oil from 160 different wells. Company officials say the field is believed to hold 22 million barrels of oil. The company last month also closed on a deal to buy a 31 percent stake in the Maykop gas condensate field in Adygea, Russia. Fountain has formed a joint venture with a unit of Gazprom, Russia's colossal gas company. Founded in 1980 as an Oklahoma-based oil and gas producer, the company changed course in 1988 to concentrate on a new technology that increases production from oil wells by using electricity to heat up reservoir fluids. But Electromagnetic Oil Recovery, as the company was known, failed to thrive. Early last year, Eugene Meyers took over as chairman of Electromagnetic Oil in an effort to resuscitate the company. In August 1994, a group of Norwegian investors with extensive contracts abroad bought into the company. The company was renamed Fountain Oil and its strategy changed to focus on international oil and gas production projects. Since that time, events have moved quickly. But Nyberg said the developments really are the product of years worth of negotiation and contact-making. "This is not done in six months," he said. "Nobody should believe that." (David Ivanovich, Houston Chronicle Knight-Ridder/Tribune Business News, Nov 20)
[7] Large Oil Deposits Discovered in AlbaniaAlbanian minister of mineral resources and energy said more than 440 million tons of oil-deposits have been discovered in the regions of Durres, Patos, and Tirana, AFP reported on November 21. Abdyl Xhaja said contracts have been signed with Shell, OMV, BHP, OXY, and Agip, which have invested more than $100 million dollars over the past two years in on- and off-shore prospecting. The companies expect to spend another $60 million in 1996. Current on-shore production of an estimated 1,200 barrels a day could shortly rise to 20,000 barrels. More than 200 foreign companies have been asked to study production possibilities.
[8] Stock Exchange Opens in BucharestRomania's first stock exchange since World War II opened on 20 November in Bucharest. A total of seven companies were quoted at the opening session, with five more due to appear in the near future, exchange officials said. Of the seven listed companies, only one is completely in private hands; the Romanian state still holds a 70% stake in the other six. The opening of a stock exchange was one of the conditions set by IMF for the granting of new credits to Romania. Initially it will operate only once a week.
[9] Albania, Italy Unveil Second Phase of Economic CooperationAlbania and Italy unveiled on November 21 the second phase of their economic cooperation. Infrastructure will be the main target of Italian aid investments to Albania, beginning January 1996. During the first phase, Italy's credits were mainly used to provide food to the Albanian population. They were also used to finance a water supply facility in Boville near Tirane, a telephone network and road construction projects.
[10] Mediterranean Conference to Open in BarcelonaForeign ministers from the 15 European Union states and 12 non-EU Mediterranean countries meet in Barcelona on Nov 27 and 28 to draw up ambitious plans for a zone of peace and free trade by the year 2010. Diplomats said while Barcelona aims at creating an overall framework for cooperation, in the form of follow-up conferences, annually or once every two years, bilateral matters could also be tackled on the sidelines. The Barcelona meeting would review a EU package of development aid to the region worth 4.69 billion European Currency Units (ECU's) over five years, to be complemented by European Investment Bank loans, diplomats said. Apart from the 27 nations taking part, ambassadors from the United States, Russia, the Czech Republic, Slovenia, Albania, Slovakia, Poland, Hungary, Bulgaria, Romania, Lithuania, Latvia, Estonia and Saudi Arabia will also attend.
[11] East Europe Currency Exchange Rates for November 20ALBANIA LEK 92.86 BULGARIA LEV 69.071 C'WEALTH IND. STATES 4544 CROATIA KUNA 5.2234 CZECH KORUNA 26.175 ESTONIA KROON 11.25 HUNGARY FORINT 135.42 LATVIA LAT 0.53 LITHUANIA LITAS 4.00 POLAND ZLOTY 2.4665 ROMANIA LEU 2548.00 SLOVAK KORUNA 29.31 SLOVENIA TOLAR 122.42 UKRAINE KARBOVANET 178000.0 YUGOSLAVIA NEW DINAR 1.405 |
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