“I consider your visit important,” said President of the Republic Sali Berisha at the meeting he held yesterday at midday with the Islamic Bank delegation, headed by the president of this bank, Dr. Ahmad Muhammed Ali. We welcome all those who are helping and supporting us in carrying out the processes of reform and democratization of life. The ties between Albania and the Islamic countries are traditional. We must strive to strengthen them. Dr. Ahmad Ali, after expressing his pleasure at this visit and the warm reception, said that he was optimistic that this difficult period of transition would be overcome as soon as possible. “We will support you with investments, and we are ready to begin cooperation with you immediately in all fields: the economy, agriculture, education, transport, etc.” The meeting also discussed the crisis in the region. It was emphasized that a strong and economically stable Albania would be a source of support for the cause of Albanians in Kosovo. PRESS AND INFORMATION OFFICE AT THE PRESIDENCY

Economic reform in Albania, despite the many difficulties, is taking increasingly important steps.

GENC RULI, MINISTER OF ECONOMY AND FINANCE: One of the most important aspects of the reform is undoubtedly the restructuring of the banking system. In order to establish a system suited to the market economy toward which we are moving, new banking laws were also drafted. These represent a major step forward, since they establish the legal basis for this system. The new legislation not only divided banks into two tiers but also recognized the right to establish private banks, whether with Albanian or foreign capital. It was precisely this provision in the legislation, together with other positive factors, that made it possible to bring the discussions on establishing such a bank to fruition.

“ALBANIA HAS GREAT POTENTIAL, AND WE ARE HERE TO HELP DISCOVER AND REALIZE THIS POTENTIAL” Our first wish is to begin work as soon as possible. We are convinced that we can do a great deal together with you, and during this period we have prepared a very impressive program which we hope to implement as soon as possible. We are also convinced that Albania can experience ... [the source text is garbled here] ... is not to be underestimated; it is important. I think discover and realize this potential. I believe it is good for Albanians to have confidence in themselves, because together, and with our help, they can ... [the source text is garbled here] ... not to be underestimated; it is important. I think discover and use they can do a great deal. We hope that Albanians will manage to achieve more and more, with our help and cooperation. … not to be underestimated —[?] ... [the source text is garbled here] ... I particularly value the fact that the people, by showing political confidence in the new government, are accelerating processes of such high-quality cooperation as the establishment of this joint bank. Banca di Roma is Italy’s most powerful bank and one of the leading banks in Europe and the world. It is the result of the merger of Banco di Roma, Cassa di Risparmio and the Santo Spirito bank — a major banking giant that will establish a joint bank in Albania with the Albanian Bank. This may be considered our number-one success. The board of this bank has a long-standing tradition dating back to the beginning of the century; therefore, we thank it for coming to Albania and, at the same time, undertake to respect the partnership. I would also add that this first step will be accompanied by the arrival of other powerful banks. My idea, and the policy of the entire board of the Bank of Albania, has focused on bringing in the highest-quality banks from Europe and the world. I foresee that, if this political stability continues in Albania, our country will soon have the privilege of becoming an international banking center. I believe that the start of operations of the joint bank will coincide with the arrival of the President of the Italian Republic, Mr. Skalfaro. The signing of the dhjesëm[?] opened the way for the procedures to begin and for the premises to be set up as workplaces. The headquarters will be in Tirana, while the bank’s branches will extend to all the country’s main districts. Highly advanced banking technology will bring qualitative improvements to business and transactions amid the influx of foreign investment.

GENC RULI, MINISTER OF ECONOMY AND FINANCE: One of the most important aspects of the reform is undoubtedly the restructuring of the banking system. the existing banking mechanism; for many reasons, this system would not be able, on its own, to become a proper banking system for a market economy within a short period of time. The presence of private banks, especially reputable foreign ones with a long tradition, is undoubtedly a driving force in renewing the banking system. I would call the creation of the joint bank between the Bank of Albania and Banca di Roma an economic event, especially if we also take into account the seriousness and reputation this bank enjoys in the world. The opening of this bank will have an impact

ILIR HOTI, GOVERNOR OF THE BANK OF ALBANIA: The first meeting with the senior representatives concerning inflation trends, etc., of the Bank of Rome was held in early April 1992, The first meeting with the senior representatives concerning inflation trends, etc., of the Bank of Rome was held in early April 1992. Under the new political conditions, alternatives emerged that created a credible basis for the position of the banking system in Albania. Taking positive advantage of the new political situation, the General Manager of the Bank of Rome, Dr. Cesare Gerenzi, was proposed the establishment of a joint Italian-Albanian bank with equal capital participation. The idea was accepted, but during the preliminary phase the working groups from both sides would exchange information on the country’s macro-political and economic position (country risk). Thus, the new government’s reform program for the financial and banking systems was followed step by step. The priority directions at the outset of the reform changes were based mainly on integrating the centrally planned economy into the market economy through privatization, a free-pricing system, and changes to bank interest rates in parallel with the banking system. On the other hand, great importance was attached to presenting as realistically as possible the country’s favorable characteristics for profitable investment. During this period, facing great sacrifices, the Albanian people received substantial support from the IMF and the World Bank, which, at the end of August, approved the economic reform adjustment program (Stand-by Agreement). The creation of a new banking system whose legal structure is on a par with that of European countries, as well as a fiscal system that realistically positions the state budget, were the main factors that convinced these major international economic-policy institutions to accept Albania as an active member. During this period, while acknowledging the major contribution made by the IMF, the World Bank, and the EC to normalizing the social economy through their assistance during this struggle for survival— the Bank of Albania have the world. I foresee that, if the joint bank will begin operations to Republic, Mr. Skalfaro. The signing of the dhjesëm[?] gave the green light to begin the procedures and set up the working premises. will extend throughout foreign investment.

A delegation from the Islamic Development Bank, headed by the president of the bank, Dr. Ahmed Mohamed Ali, arrived in our country,

Prime Minister Aleksandër Meksi received the delegation of bank, Dr. Ahmet Mohamed Ali. After welcoming the guests[?], Mr. Meksi informed them about the extremely dire and devastated state of the economy left behind by the failed policies of the Enverian monist dictatorship. Albania, he said, has begun democratizing its life and carrying out economic reform, with the economy showing signs of general stabilization. But, for these perspectives, investments and financing are needed so that they can be accelerated and Albania can emerge as soon as possible from its dire economic situation. Therefore, Albania’s entry as a member of the Islamic Development Bank, he emphasized, would make it possible and help ensure that the reforms undertaken in Albania are implemented as quickly and successfully as possible. For his part, the president of the bank, Dr. Ahmet Mohamed Ali, expressed his pleasure at visiting Albania and his view that Albania should join the bank as a member with equal rights. He said that Albania has a hardworking and educated people, and that the policies it is pursuing now, following the overthrow of the dictatorship—the liberalization of all economic and political activities—and its participation in this bank as a member, together with the contribution this institution will make through its substantial financial resources, would make it possible to overcome this dire situation as soon as possible and to carry forward the democratic processes.

The joint Italian-Albanian bank was established Economic reform in Albania, despite the many difficulties, is taking increasingly important steps. The creation of small capitalist structures, price liberalization, the establishment of a private sector in trade, the first steps toward consolidating the fiscal and customs systems, the creation of a private sector in agriculture, etc., testify to the colossal work accomplished in just a few months to transform the Albanian economy from a centralized, rigid and bankrupt economy into a flexible market economy that is producing its first positive results. As part of these processes, the establishment of a joint bank between Banca di Roma and the Albanian Bank marks a high point of extraordinary importance in the reform of the Albanian economy in general and the banking system in particular. It can be said with confidence that such an event is the first fruit of the economic policy that the government of Mr. Meksi is implementing with the help of international institutions. At the same time, it marks the opening of a new phase of reform in Albania, during which the economy will be rapidly privatized on a broad scale, accompanied by a more intensive inflow of foreign investment into the country. How will the creation of the joint bank specifically affect the processes mentioned above? Banca di Roma, formed through the merger of three of Italy’s most powerful banks, has annual activity exceeding 100 billion dollars. The flow of this bank’s investments into Albania is estimated at hundreds of millions of dollars. In this respect, it will provide strong credit support to the new Albanian capitalists, as well as to foreign ones. At the same time, the presence in Albania of one of the world’s most powerful banks creates economic and political credibility both inside and outside the country. One of the most important factors impeding the arrival of foreign investors was the risk to their capital. This bank provides complete security against this risk and makes Albania a country with no banking risk. With the arrival of such a powerful bank, many infrastructure development projects may also be implemented—projects that until now may have been blocked by the lack of large sums of concentrated capital. The creation of new legislation on the banking system and the stability of the country are decisive factors in encouraging this bank to come, but the friendly aspect must also be emphasized, once again evident in relations between Italy and Albania. The Italian government and people are providing the greatest humanitarian assistance while our country is being put to the test of survival. Meanwhile, it is known that humanitarian aid cannot lift the country out of crisis; therefore, the government’s programs and its demands have extended to the revival of production, something that can be achieved only through foreign investment and loans. Overcoming the crisis is just as vital for Albania as survival. And once again, it is an institution of the Italian state, Banca di Roma, that is taking the initiative and acting as a catalyst in opening this prospect for the Albanian economy. We thank this company and express our gratitude for this step, which goes beyond the bounds of self-interest and paves the way for further strengthening the friendship between the two peoples and cooperation between the two governments. Yesterday, in one of the halls of the Prime Minister’s Office, an agreement was signed to establish a joint Italian-Albanian bank between Banco di Roma and the Albanian Bank. On behalf of the Italian side, the agreement was signed by the President of Banco di Roma, Mr. Pellegrino Capaldo, while the Albanian Bank was represented by its governor, Mr. Ilir Hoti. The signing ceremony was attended by Prime Minister Mr. Aleksandër Meksi, His Excellency the Ambassador of the Italian Republic to Albania, Mr. Torquato Cardilli, Mr. Genc Ruli, Minister of Economy and Finance, and the General Director of Banco di Roma, Mr. Cesare Geronzi.