Manual on the Albanian Insolvency Law to Help Financial Stability

Last week, USAID and a local NGO, Assist Impact, in partnership with the School of Magistrates, announced the launch of the “Manual on the Albanian Insolvency Law” to support business development in Albania and recognized the 140 Albanian judges who completed training on modern bankruptcy and insolvency practices.  This manual and training represents the culmination of many years of work by international and Albanian legal professionals, members of the donor community, including World Bank, and the Albanian government and business community.

Although Albania ranks relatively high compared to countries in the region (62 out of 189) in the World Bank’s Doing Business Report on time and cost for businesses to resolve insolvencies indicator, only in 2012 was the first case of bankruptcy resolved.  As Albania is seeing a dramatic rise in the number of non-performing loans, a more effective implementation of its bankruptcy system would be beneficial to the country’s economy and financial stability.