Albania may be financed by criminal money, experts say

Screenshot of the show A2 Business Week 

 The Albanian economy is going through difficult days. The pandemic has significantly shrunk the main sources of financing the economy, such as exports, foreign investment, remittances or tourism revenues. But where does the currency that enters the market today come from?

But who is financing the economic turnover chain? Is it the informal economy, including the income from illegal activities, that today are keeping the economy afloat and certain sectors such as construction, call centers, tourism, etc.?

This topic was discussed this Wednesday at A2 Business Week. Arben Malaj, former Minister of Finance said that the money coming from criminal sources is worrying because according to him, it is a price that is paid in a second moment.

"In times of crisis, there is an increase in the informal economy in all countries. The concern that arises in our economy, especially in some sectors, is the money coming from criminal sources. No individual or business can grow steadily if it tolerates criminal money. This is a price that pays off in a second term. Not everything can be tolerated to make it look like the economy is moving. Difficult situations have their costs, the problem is to what extent does this decline goes. This is a price that is paid a second time", said Arben Malaj.

Former Deputy Minister of Economy, Elton Haxhi, said that the informal economy, in addition to damaging tax revenues and the state budget, also creates social problems. 

"The pandemic has also affected the growth of informal money. This happens because the tax administration is more facilitated in terms of field controls", said further Haxhi.