Open Data Albania is investigating the level of profit transferred by the Bank of Albania to the state budget from 1993 to 2013. Bank of Albania is the central bank of our country and operates under the provisions of Law no. 8269, dated 23.12.1997. The Bank of Albania is independent of any other power to achieve the main objective of its activity, and the performance of tasks. Bank of Albania reports to the Parliament of the Republic of Albania.

Bank of Albania’s capital consists in the funding fund, which is 750 million ALL and the general reserve fund, which is 500% of the capital of the Bank of Albania. When in the balance of the Bank of Albania the value of its assets falls below the amount of its liabilities and the capital, the Minister of Finance transfers to the Bank state securities traded by applying percentages market interest to cover the lack of assets.

Net profit of the Bank of Albania is calculated after deducting from income, expenses incurred for the financial year in consideration. 25% of the profit goes into the general reserve fund while the remaining part of the net profits will be used to compensate securities issued to the Bank of Albania. Net income, remaining after deduction of the general reserve fund and fees above, shall be paid to the state budget within four months after the end of the financial year.

Profit transferred from BOA to the state budget has undergone constant fluctuation, without following a particular trend. Year with the lowest transfer was 1994 where only 0.4 million ALL from the profit of BOA was transferred to the state budget, while the year with the highest transfer was 1999 with 17.59 billion ALL. After year 1999 the profit transferred to the budget has been declining, where last year the profit was 4.628 billion ALL.

Processing and comments: ODA

In terms of the growth that the profit transferred to the budget has undergone, the rate of ups and downs has been unstable. The largest reduction has been in 1994, when compared to a year ago, the profit transferred to the budget was about 65% less. While in 1995 there was an increase of 1,381% profit transferred, huge increase, which was never repeated in any other year. High-growth years are also the years 1997 and 1998 where growth exceeds 100%. Starting in 2000 and until 2007 it continued to decline, reaching up to 43% less. In 2008, 2009 we have a transferred profit improvement, with an increase of about 14%. But in the past two years, this transfer of profits remained in decline.

Processing and comments: ODA

The profit transferred from BOA to the state budget occupies a share of the revenue to the budget that can be compared with the share of local government revenues. The major contribution to the revenues of this transferred profit has been in 1998 with about 16% of total revenues. After this year, their share has been declining continuously, where last year it was only 1.41% of revenues.

Processing and comments: ODA

Comments and Analysis: Open Data Albania
Contributed by: Ina Baja