President of Albania, Bajram Begaj, has sent a critical letter to the Albanian Parliament concerning findings and observations related to the microcredit scandal. His criticism isn't directed solely at the Parliament but at the failure of supervisory systems, which, according to him, have not only malfunctioned but may have been deliberately obstructed. He emphasizes the need to protect citizens who have been exploited through microcredits, a matter he considers criminal.
 |
| Bajram Begaj |
"The widespread nature of this abusive scheme over a relatively long period raises suspicions that supervisory systems were either non-functional or deliberately prevented from functioning. These claims are a serious concern and require a convincing refutation from all relevant institutions," stated Begaj.
The President described the microcredit fraud as a criminal mechanism that has ensnared a large number of citizens. He pointed out that such abuses, which spanned over a considerable time, involved entities under state supervision, including microcredit companies overseen by the Bank of Albania and private bailiffs supervised by the National Chamber of Private Bailiffs and the Ministry of Justice.
These entities, including private bailiffs identified as part of the scheme, should have been detected and corrected earlier through routine inspections by state authorities.
The letter was addressed to the Committee on Legal Affairs and the Committee on Economy, as Begaj believes these are the only competent institutions that can provide a comprehensive and final solution. "Citizens need to understand that the state and its institutions are on their side and against the abusers," the President wrote.
Bank of Albania Responds to President's Letter
In response, the Bank of Albania issued an official statement asserting that it has consistently fulfilled its constitutional mission of maintaining price and financial stability in the country.
"The Bank of Albania has always fulfilled its constitutional mission: maintaining price and financial stability. This achievement has been consistently acknowledged by the highest local authorities and reflected in the Annual Resolutions of the Albanian Parliament, as well as public statements from our international partners, including the International Monetary Fund (IMF), the World Bank, and the European Commission," the statement read.
The Bank emphasized that it has neither allowed nor created any illegalities. Instead, it has further improved the regulatory framework for overseeing the purchase of problematic loans.
The Bank of Albania clarified that it has never sanctioned or fostered illegal activities. On the contrary, it has enhanced the supervisory regulatory framework, especially regarding the purchase of problematic loans. This framework, supported by international institutions like the IMF and the World Bank, was designed to address issues identified in analyses conducted as part of the IMF-supported program in 2015 and 2016. These analyses revealed high levels of non-performing loans as a vulnerability for the banking sector, leading to a 2015 action plan by Albanian authorities to reduce such loans. This plan mandated the licensing and supervision of companies managing non-performing loans, reflecting their importance to the banking system.
The Bank of Albania reiterated its commitment to professionalism, integrity, and the protection of consumers, stating that it has always acted within its legal framework. The Bank's role is to regulate and oversee the financial market within its jurisdiction, addressing systemic issues with comprehensive solutions to maintain financial stability and consumer protection.
Despite challenges beyond its jurisdiction, the Bank continues to collaborate with the Ministry of Justice and other relevant bodies to resolve these issues. It remains open to providing necessary information and clarifications, underscoring transparency and accountability as crucial to its credibility.