The first private securities exchange in Albania supports the country’s economic development and will have a positive impact on long-term investments by the business. The statement comes from the Director of Development and Economic Cooperation, Ministry of Economic Development, Tourism, Trade and Entrepreneurship, Pranvera Kastrati, who in an interview for ‘Scan Magazine’ comments on the licensing of the Albanian Securities Exchange ALSE. The exchange is expected to open its doors in the fall of this year, and according to Kastrati, this is accompanied by a series of challenges for business associations and state institutions, who are responsible for helping and enhancing the knowledge of the Albanian business in this field.
Mrs. Kastrati, on 3 July, the Albanian Financial Supervisory Authority has approved the opening of the first private securities exchange in Albania. From your point of view, how important is this decision for the business and the Albanian economy?
Without doubt, the creation of the securities exchange is a very important step in supporting the country’s economic development and the need to support businesses and entrepreneurship. This is also seen by the fact that in all countries, whether developed or developing, the exchange has given much added value to long-term investment resources. As long as businesses need to have opportunities and alternatives to invest in the long run, exchanges in our assessment will definitely pose a positive impact. There is no question that this process has challenges. It is a new venture, which will require, among other things, the undertaking of many activities and subsidiary initiatives, both by the government and the business itself, based on the fact that the creation of the stock itself will also enable the listing of companies, quoting their shares and will create opportunities for trading companies to trade their stock on the stock exchange.
According to you, what are these challenges?
There is a need for the exchange to have the image of trust for all commercial companies in Albania hence is very important to build confidence between the first private securities exchange and commercial companies. It is a process and an enterprise that cannot be done by the exchange alone. Indeed, it is an initiative that should have support by state institutions, businesses and business associations themselves, in order to create a climate of cooperation between the securities exchange and commercial societies. Understandably, it will not always be simple. Not all business categories in Albania will have the opportunity to make a positive use of the stock market for their investments. But, of course, like all the other processes that start in the development process, the stock market will need support, until it returns to a more consolidated support for Albanian businesses.
You mentioned the challenges and the role state institutions should have in solving them. More specifically, what should be the position of these structures in solving them?
What I consider is related to the fact that businesses themselves have to understand what the exchange is. They need to have more information in order to believe it. We can just recall that in 1996 the first exchange was created. There was a revival in 2002 (Tirana Stock Exchange), but that did not result in a successful venture and did not have the impact expected to be released at that time. I cannot say that the reason that it did not give the expected impact was the lack of education on the exchange, but it should be recognized that education has played its part. And I believe that the Albanian institutions that are responsible for overseeing and in this case the role of the Financial Supervisory Authority is very important, but together with the other institutions that monitor the financial markets in Albania, they should help train and promote knowledge to businesses on the exchange itself.
According to you, what would this bring?
It is understood that the securities exchange will initially be more acceptable and available faster to elite businesses, but if the degree of awareness and knowledge level increases, it can turn it into a good opportunity for both medium-sized businesses as well even for individuals. Given that the possibility for the individuals themselves to be able to take part in the exchange through the securities exchange, with their own savings, I believe that the more knowledge and stock exchange information is obtained, the easier it will be for the stock exchange to provide expected effects.
How does the business itself can contribute to the ‘education’ of entrepreneurs about the stock exchange?
Of course, the education on exchange market is not only a matter of state institutions. However, elite businesses need to be more and more involved in circulating knowledge about the stock market. Business associations have a role to play, whether through chambers of commerce or other financial affiliates, so that information is distributed and business expectations on stock exchanges grow.