annual report‘06
© 2007Albanian Financial Supervisory Authority
Any use of data included on this publication should be subject of the reference to AFSA.
Please contact us for any further information. Address : Rr. “Perlat Rexhepi”, Kati II, Tirana / ALBANIATel : +355-4-247148, 250686Fax : +355-4-250686E-mail : [email protected] URL : www.amf.gov.al
Graphic Design: Studio Grafi ke Elsi KongoPress: PEGI
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 3
Chairperson’s Statement 4
Executive Summary 5
AFSA Institutional Overview 6 1.1 AFSA Set Up 6
1.2 AFSA as a Regulatory Entity 8
1.3 AFSA Management and Organization 10
AFSA Activity 18 2.1 Regulatory Activity 18
2.2 Licensing Activity 21
2.3 Supervisory Activity 27
2.4 Institutional Relations 45
2.5 Information and Technology 49
Future Perspective 51
Appendixes 53 A. AFSA Organizational Structure 53
B. Non- Banking Sector Legal and Regulatory Framework 54
C. List of Supervised Institutions 59
D. Statistical Tables 63
Table of Contents
Honorable ladies and gentleman,
It is a great pleasure for me to present the fi rst Annual Report of the
Albanian Financial Supervisory Authority.
The AFSA was established by the Parliament of Albania as a unique
independent regulatory and supervisory institution of non-bank fi -
nancial markets and started its operation as of October 2006. AFSA
establishment demonstrated the commitment of Albanian authori-
ties in terms of improvement and strengthening of non-bank fi nan-
cial markets in the frame of fi nancial system in Albania and in the
overall country economy.
Approximation to European standards in the context of the commit-
ment made by Albania through Stabilization and Association Agree-
ment, dynamic development and markets best practices effi ciency have laid out the need
of revising the legal framework, which regulates the supervised sectors, as well as, the
supervisory traditional methodology. Drafting of compliant codes concerning markets’
regulation area associated with risk based modern supervisory methodology and with
increasingly improved expertise by maintaining a fl exible regulatory environment will
promote non-bank fi nancial market development to protect public interests.
The Report focuses on two directions: the AFSA institutional establishment by means of
describing the establishment, the organization structure and its functions – The following
part of the Report addresses the non-bank fi nancial markets activity over 2006 and the steps
taken by the respective supervisory institutions and, further on, by AFSA in terms of regula-
tion and supervision. Additionally, the Report presents the AFSA vision for the future.
The activity, which is described in this report, has been a challenge for the AFSA staff
members, who covered it with a serious commitment. In addition, Board members have,
provided their contribution through their constructive and professional role to establish an
effi cient and modern institution. I express my gratitude to all of those who assisted and
supported AFSA and, specifi cally, the World Bank.
I hope that this report will be of interest and valuable to the readers.
Chairperson’s Statement
Ms. Elisabeta GJONI
Chairperson
4 A N N U A L R E P O R T ‘ 0 6
The Albanian Financial Supervisory Authority (AFSA) was established in 2006. The Au-
thority consolidated the regulatory – supervisory functions of fi nancial non-banking ac-
tivities, which were previously carried out by Insurance Supervisory Authority, Albanian
Securities Commission and by the Inspectorate of Supplementary Pensions Private Insti-
tutions. Protection of consumers’ interests, promotion of sustainability, transparency and
reliability of non-banking fi nancial institutions as well as ensuring law enforcement con-
stitute the goals of the Authority. World Bank has played a signifi cant role in supporting
the Government initiative regarding AFSA design and institutional establishment.
Insurance market is the largest and most developed market across non-banking fi nancial
markets, whereas securities and private pensions markets are in their initial development
stage. Albanian insurance market, despite challenges and issues, has recently been sub-
ject to a positive development trend and it presents a large potential in terms of quality and
quantity expansion. This potential is based on the favorable economic conditions, improved
regulatory and supervisory system, low market penetration rate, as well as, on business com-
munity and population, which are dynamic and easily adaptable. It is important to point out
that foreign investors see the insurance market as very attractive. Premiums volume in 2006
increased by 11.95% compared to 2005, while the total assets amounted to about 11,4 billion
ALL1 marking an increase to an extent of 11,69%. Although Premiums Income to GDP ratio
at 0.50% and Assets to GDP ratio at about 1.3% are lower than in similar markets, they in-
dicate potential for market development Premiums structure, although under improvement,
consists of motor compulsory insurance, which takes up about 66% of it. Life insurance
takes up about 7% of gross written premiums. Loss ratio for the market remains at a low rate
of about 35%, which is still far from the international minimum standard consisting of a rate
of 50%. Bringing loss ratio to industry standards is one of the main AFSA priorities. There are
seven non-life insurance companies, two life insurance companies and one company which
conducts both life and non-life activity that operate in the market.
Three pensions companies operate in the private and supplementary pensions market.
Range of activity in this market is limited. Pensions accumulated fund amounted to about
13.15 million ALL and the number of contributors was above 2600. Future development of
this market is part of a wide reform with regard to the development of pensions’ fi rst and
second pillar. Securities market is mainly focused on retail trading of the Government pa-
pers, while stocks market remains still undeveloped.
Improvement of regulatory framework by ensuring an approximation to the European Union
Directives for the three fi nancial sectors under jurisdiction, transition to a risk based supervi-
sory system associated with introduction of the IT developed platforms, as well as, promotion
of the markets development along with the outputs provided by these markets constitute
some of Albanian Financial Supervisory Authority future priorities. In addition, AFSA institu-
tional consolidation pursuant to standards of a fi nancial regulator remains a priority task.
Executive Summary
1) Albanian Lek – ALL (as of December 29th, 2006 1 Euro=123,85 ALL)
5A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y
A N N U A L R E P O R T ‘ 0 66
1.1.1 Establishment of a Unifi ed Regulatory Entity
Year 2006 marked a signifi cant step in terms of the reformation of supervision and regulation
relating non-banking fi nancial system. Based on the Government’s initiative to reform the non-
banking fi nancial regulatory system towards unifi cation into a consolidated regulatory entity,
and based on the close consultancy and assistance of World Bank, the integration of regulatory-
supervisory entities was accomplished in October 2006 including markets and legal entities
performing activities in the insurance area, securities market, as well as, supplementary private
pension schemes. In this context, the unifi cation of Insurance Supervisory Authority (ISA), Al-
banian Securities Commission (ASC), as well as, I this led to the establishment of the Albanian
Financial Supervisory Authority (AFSA) as the unique institution responsible for licensing, su-
pervision and regulation of the overall non-banking fi nancial sector activity in Albania.
All component elements of the regulators’ unifi cation process in the non-banking sector, in-
cluding drafting of the strategy, AFSA establishment, building of institutional capacities, and
selection of trained staff, as well as, Authority’s vision for the future were accomplished upon
the World Bank permanent support. This cooperation continues in relation to the improve-
ment of both, the regulatory-supervisory framework and the functions of the institution.
AFSA was established pursuant to Law No. 9572, date 03 July 2006 “On the Albanian Fi-
nancial Supervisory Authority”, which came into effect as of 10 August 2006 following its
decreeing by the President of the Republic and its publishing in the Offi cial Journal. The
Parliament of Albania appointed 7 members of AFSA Board as of 27 September 2006, thus
allowing the Albanian Financial Supervisory Authority to start its activity as of 11 October
2006. Authority is a central institution, which is independent from the Government and
reports to the Parliament on its activity performed over the prior year.
I. AFSA Institutional Overview
1.1 AFSA Set Up
Financial Supervision Integration Advantages
Integrated supervision is an approach, which is based on the assumption that, in a global economy, changes to in-
stitutions that provide fi nancial services are becoming decreasingly smaller and they are often causing confl icting
regulative practices, which may leave room form violations or negative infl uences on the fi nancial markets develop-
ment. Financial markets’ fast development and launching into the market of increasingly more complex fi nancial
services instruments are factors, which, in several cases, have caused an overlapping of these markets’ supervisory
coverage scope. A new and highlighted trend of fi nancial regulators’ unifi cation can be observed over the last decade,
which is also a characteristic of the Eastern Europe.
A fully integrated supervisory structure is better than a fragmented structure due to the following reasons:
• Integration ensures equivalent regulation and addressing standards across different sectors;
• Integration provides synergy between different regulators’ functional areas either from the personnel or from
the regulatory impartiality point of view;
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 7
• Integration facilitates international cooperation better.
Integration can be a complete unifi cation, or into two regulatory structures. Albania pursued the model of two fi nan-
cial regulators (Bank of Albania and AFSA), to be reviewed at a second stage towards a complete unifi cation.
Integration Models
Relevant experiences from developed countries have demonstrated that there are two models of fi nancial system
regulatory institutions integration:
a. Horizontal Integration – unified regulator’s organization structure is built according to the supervisory proc-
esses functions (on site, off site supervisions, licensing),
b. Vertical Integration – organization structure is built according to sectors (insurance, investments, pensions).
Both to date theoretical analysis and experiences speak in favor of a functional or “horizontal” integration, which,
in fact, has greater administration challenges at the initial transfer stage, although it has a series of advantages
during the activity of the institution. Albania applied the “horizontal” model for a functional integration.
.
1.1.2 Integration in the Case of Albania and the Chosen Model
After taking into consideration the development of the fi nancial sector (especially the non-
banking sector) and the number of fi nancial institutions operating in 2006, it was con-
cluded that Albania had too many fi nancial regulators. In addition, the fi nancial sector
regulatory and supervisory function was shared among the Bank of Albania, which su-
pervises the banking sector and a series of regulatory entities with different statuses that
supervised various areas of non-banking fi nancial sector (ISA, ASC, ISPPI). This had led to
fragmentation of authority and responsibilities, sharp differences in terms of standards as
well as ineffi cient use of regulatory and supervisory skills.
The establishment of the Albanian Financial Supervisory Authority, division and stand-
ardization of fi nancial sector regulation and supervision into two main pillars based on the
banking sector supervised by the Bank of Albania and the non-banking sector supervised
by an integrated regulatory entity (AFSA) is the best and most appropriate solution for the
country’s fi nancial system. On the other hand, non-banking fi nancial system regulatory
and supervisory integration will enhance the opportunities for a more rapid and sustain-
able development of this important sector of the economy.
Albania chose the “horizontal integration”, which is a combination of the functional inte-
gration at high levels of the organization unit of AFSA structure and, inside them, a sector
division. Thus, the main departments are defi ned by the key functions of the following in-
tegrated institutions: licensing department, off-site department, on-site department, legal
affairs department, etc. They include the sector divisions such as, for example, insurance
activities licensing, securities investment activities, etc.
A N N U A L R E P O R T ‘ 0 68
1.2 AFSA as a Regulatory Entity
MissionThe AFSA’s fundamental mission is to protect the consumers’ and investors’ rights closely
linked with the safety of the supervised operators by means of ensuring law enforcement.
VisionPromoting and fostering higher standards to protect the consumers and licensees’ integri-
ty, non-banking fi nancial market stability and effi ciency increase, as well as, improvement
of professional degree by means of permanent enhancement of supervisory and regulatory
level in the market make up our targets.
Key Objectives Within the frame of performing its functions and exercising its authorities set forth in the
law, the Albanian Financial Supervisory Authority is led by the following objectives:
1. Protection of consumers’ interests;
2. Enhancement of sustainability, transparency and reliability
of non-banking fi nancial markets;
3. Ensuring law enforcement.
Institutions under jurisdiction
• Life and Non-Life Insurance Companies;
• Reinsurance Companies;
• Brokers and Insurance Agents;
• Tirana Stock Exchange;
• Albanian Share Register;
• Securities Financial Intermediaries;
• Investments Advisers;
• Supplementary Pensions Private Institutions
AFSA’S Main Functions AFSA’s main functions consist of the regulation and supervision of the following:
a. Insurance market and the activity of this market, which includes all insurance, reinsur-
ance, intermediary activities and operations that stem from these activities.
b. Securities market and the activity of this market, which includes the activity of entities,
linked with securities investments which operate in this market.
c. Supplementary pensions market and the activity of this market, where all supplemen-
tary pensions’ insurance activities provided by the supplementary private pensions
institutions are included.
d. Other non-banking fi nancial institutions in compliance with the defi nitions set forth in
special laws of the area.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 9
The AFSA’s regulatory and supervisory basic functions are set forth basically in Articles
2 and 13 of the Law No. 9572, date 03 July 2006 “On the Albanian Financial Supervisory
Authority”, and partially in the laws of the area (Law No. 9267, date 29 July 2004, “On the
Insurance, Re-insurance and Intermediary Activity in Insurance and Reinsurance”, Law
No. 8080, date 01 March 1996, ”On Securities”, and in Law No. 7943, date 01 June 1995,
“On Supplementary Pensions and Private Pensions Institutions”. However, a series of regu-
latory functions stipulated by the laws of the area are addressed in various manners as a
result of the heritage of different dependencies of the three prior regulators. Legal revisions
in terms of clear defi nition of authorities on standards issuance or recommendation, laws
and by-laws of the areas make up an ongoing process of institutional integration.
Financial System Supervisory and Regulatory Structure in Albania
ACCO
UN
TABI
LIT
YRE
GU
LATO
RS
FIEL
DS
Parliament
Banks
Universal Banks
Foreign Exchange Offices
Other Financial Institutions
Insurance Companies
Insurance Business Intermediaries
Insurance Service Suppliers
Securities Markets
Securities Business Intermediaries
Securities Registers
Investments Advisors
Supplement Private Pensions Institutes
OtherInstitutions
SecuritiesMarket
Private Pensions Market
InsuranceMarket
Bank of Albania(Banking Sector)
Financial SupervisoryAuthority (Non-banking Sector)
MA
RKET
OPE
RAT
OR
S
A N N U A L R E P O R T ‘ 0 610
1.3 AFSA Management and Organization
1.3.1 AFSA Board Activity
The board is the Albanian Financial Supervisory Authority’s leading and decision making
organism. It is a collegial body composed of 7 members, three of which, the chairperson
and two deputy chairpersons are full time executive members. The chairperson of the
Board and one of the two deputy chairpersons are elected for a 5-year term, whereas the
other deputy chairperson is elected for a 4-year term. The term for the four other Board
members is as follows: the fi rst – 5 years, the second – 4 years and two others – 3 years.
All board members are elected by the Parliament of Albania. The Council of Ministers rec-
ommends the chairperson, the two chairpersons and two members (the Bank of Albania,
Ministry of Finance and National Accounting Council recommend three out of these fi ve
members), whereas the Parliament recommends two other members.
During 2006 the Board had conducted frequent meetings to discuss a series of legal duties
connected with AFSA set-up and institutional functioning. The purpose of the meetings
has been the merging and consolidation of three existing regulators into one entity. Si-
multaneously the Board has cautiously tracked market developments utilizing the work and
experience of AFSA’s staff and WB assistance, by responsibly exercising its authorities in
relation to attentive market supervision through making a series of important decisions.
The Board’s activity has consisted in passing a series of regulations concerning function-
ing or the market, implementing a series of administrative measures targeting regulation
of the market and operators which conduct their activity in this market.
Non-executive members of the Board have provided a special contribution in the relevant
areas by means of committing a considerable amount of time and energy.
The Albanian Financial Supervisory Authority Board has the following composition:
1. Ms. Elisabeta GJONI Chairperson
2. Mr. Keler GJIKA Deputy Chairperson
3. Ms. Ermela GUXHOLLI Deputy Chairperson
4. Ms. Miranda RAMAJ Member
5. Ms. Diana LAMANI Member
6. Ms. Raimonda KARAPICI Member
7. Ms. Silvana BELLO Member
Ms. Ermela GUXHOLLI / Deputy Chairperson
Ms. Miranda RAMAJ / Member
Ms. Rajmonda KARAPICI / Member
Ms. Diana LAMANI / Member Ms. Miranda RAMAJ / Member
Mr. Keler GJIKA / Deputy Chairperson Mr. Keler GJIKA / Deputy Chairperson
Ms. Rajmonda KARAPICI / Member
Ms. Diana LAMANI / Member
Ms. Ermela GUXHOLLI / Deputy Chairperson
Ms. Silvana BELLO / Member
Ms. Elisabeta GJONI / Chairperson
AFSA Board Members
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 11
A N N U A L R E P O R T ‘ 0 612
Financial Supervisory Authority Board Main Competences
1. Drafts the rules for the description and scope of work of every department and unit.
2. Drafts and adopts key principles of its activity.
3. Drafts and adopts rules and guidelines as set forth in the law.
4. Hands out written guidelines concerning interpretation and enforcement of laws and by-laws.
5. Issues, refuses, cancels or revokes licenses of exercising activity in the non-banking financial market.
6. Limits or interrupts investments of insurance and re-insurance companies when they do not comply with regu-
latory rules or when they put the financial position of the company into risk.
7. Reviews insurance contract terms before they are launched into the market by the operators.
8. Adopts the financial statements of insurance and re-insurance companies.
9. Adopts and distributes accounting standards and financial reporting formats, which are binding on the licensees.
10. Defines supervisory and control policies of the supervised entities and of the non-bank financial market devel-
opment.
11. Adopts the list of accounting experts for the Companies that operate in the non-bank financial markets.
12. Annually adopts the report on industry in connection with the condition and the prospect of the non-bank
financial market.
13. Adopts inspection handbooks.
14. Pursuant to the law, makes a decision to start, the bankruptcy procedures for the supervised companies and
appoints the liquidator.
15. Adopts the AFSA draft budget and the annual report.
16. Makes decisions on entering into cooperation and information exchange memorandums with authorities inside
and outside the country.
17. Makes decisions about hiring area experts to provide consultancy service.
18. Adopts the salary and remuneration policy of AFSA staff.
19. Adopts rules regarding staff appointment and dismissal.
1.3.2 AFSA Structure
The Parliament of Albania adopts, upon the AFSA Board recommendation, the Authority’s
organizational structure.
The Board adopts the regulation of internal administrative organization, special functions
and responsibilities of departments and directories, communication procedures among
them, as well as, responsibilities of technical staff and
other employees. AFSA, in the frame of its staff struc-
turing and organization, is inclined towards ensuring
the required inputs and human resources to perform a
highly effi cient supervision and regulation of various
non-banking fi nancial sectors.
AFSA commenced its activity as of October 2006 with
an organizational structure adopted pursuant to the
AFSA Structure
Completion of tasks and meeting the objectives
is ensured by the authority’s staff, which is or-
ganized based on a structure adopted by the
Council of Ministers Decision No. 551, date 02
August 2006 “On the Albanian Financial Super-
visory Structure”.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 13
Council of Ministers Decision No. 551, date 02 August 2006 and with a level of salaries for
the executive or non-executive Board members as set forth in Law No. 9584, date 17 July
2006, “On Salaries”. The AFSA 2006 organizational structure consisted of 37 employees.
The level of salaries decreased for several staff members. This did not prove to be very
appropriate in terms of integration challenges and in terms of covering all regulatory func-
tions that a regulatory entity should perform. This structure is expected to improve and
the staff number is expected to increase over time, starting from 2007 , based on the needs
and best practices.
1.3.3 Management Activity
The AFSA management has worked towards the establishment the operation of this new
regulatory entity within a short time. Initially, the attention of the executive bodies of
AFSA focused on the selection of professional staff consisting essentially of specialists,
who have a long experience in different sectors, subject to AFSA’s supervisory activity.
In this context, a great attention has been paid to motivate the selected staff, therefore a
salary and supplementary benefi ts policy has been drafted essentially based on the expe-
rience, training and responsibilities. Despite the efforts, it is diffi cult to keep the skilled
employees due to the low salary ceiling. Consequently, AFSA drafted terms of reference
in order to prepare a better organizational and salary structure to meet the goals of the
institution. The new AFSA recommended structure has been approved by the Board and
presented to the Parliament of the Republic of Albania for ratifi cation.
In order to ensure an effi cient supervision, AFSA leadership has been provided with foreign
technical assistance and it has enjoyed the close cooperation of international fi nancial do-
nors and institutions like World Bank (WB), Financial Services Volunteer Corps (FSVC) re-
garding the drafting of a well-studied strategy concerning non-banking fi nancial market in
Albania. On one hand, the AFSA has paid special attention to the institutional presentation
to the public and various stakeholders. On the other hand, AFSA, although newly estab-
lished, has continued its day-to-day supervisory activity by regularly monitoring the non-
banking fi nancial market and the operators, which conduct their activity in this market.
1.3.4 Human Resources Policy
The human resources area bears a special importance, because the attainment of targets
set by AFSA depends on the quality and motivation of every employee. The main target in
the area of human resources during 2006 was the professional development of the employ-
ees and their motivation to meet the institution goals.
The Human Resources Sector, as a part of a FSVC program, has received very useful as-
A N N U A L R E P O R T ‘ 0 614
sistance and support from experts with long experience in the human resources manage-
ment area. This program focused on important key issues:
• The drafting of Human Resources Strategy;
• The defi ning of policy directions in human resources area;
• The drafting of staff capacity building programs including training needs analysis;
• The drafting of job description in compliance with the AFSA organizational structure;
• The establishment of a salary structure that allows fl exibility based on job performance.
The main human resources policies in 2006 have focused on encouragement and promo-
tion at work, selection of a well-trained staff, as well as, the professional development of
staff through training.
FSVC experts recommendations on important issues regarding human resources area
Recruitment
• Drafting of a more attractive package about staff recruitment, which, apart from the salary, must include career
promotion opportunities, professional training, better work and communication conditions and means, appraisal
and motivation at work (rewards) etc.
• Drafting and application of uncomplicated and reasonable tests for the recruitment process.
• Drafting of a plan about gradual increase of the staff number and defining of higher priority sectors where more
staff is needed.
Performance Appraisal
Developing a simple and effective form of performance appraisal and linking this to the salary.
Career Promotion
Finding and offering opportunities to build professional capacities of the specialists that work for AFSA through
training not only inside, but also abroad. This is also a good opportunity concerning motivation enhancement.
Staff motivation at work The crucial objective of such a policy is to increase staff motivation to work and enhance
the work quality. The key element of motivation at work is material remuneration in the
form of salary and fringe benefi ts. In this context, restructuring of salary system, which
will be supported by a detailed job assessment based on the performance appraisal of
every staff member, will be carried out.
The human resources department has focused on creating a friendly and effi cient job
environment which would provide a balance of the professional and private life of staff
members.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 15
Employment Employment is one of the key elements that directly affect work effi ciency and quality. Pro-
fessional skills, communication skills and personal qualities, which help to employ skillful
and motivated individuals, are considered signifi cantly important in the employment proc-
ess. Employment of young individuals, graduated with outstanding results or, who have
received best training inside or abroad have been a priority in selecting AFSA staff. Such
guide makes up a real source of development regarding work in this institution.
In order to support the employment policy, staff shortlists procedures and rules have
been drafted and they have been presented to the AFSA Board for approval. According
to these rules, competition will be the main approach of attracting professionals. In ad-
dition, the aim will be to apply methods, which will allow selection of potential candi-
dates, whose profi le would match the required job descriptions.
On-job staff training Training through work is an ongoing process, which aims at conveying knowledge to
ensure the continuity of professional activity. Human Resources Sector has focused its
attention on short-term training either in the country and abroad, relying also on the as-
sistance and support provided by donors such as World Bank and FSVC.
Staff training has essentially consisted in attending conferences and workshops, which
are linked to various sectors of the non-banking fi nancial system and whose activity is
subject to AFSA supervision and regulation. Additionally, the Authority aims at promot-
ing and funding, to a certain extent, the long term training of its staff, especially in areas
that allow successful accomplishment of major tasks and goals of the institution.
1.3.5 Internal Auditing
Pursuant to the duties defi ned by Law No. 9572, date 03 July 2006 “On the Albanian Finan-
cial Supervisory Authority”, and Law No. 9009, date 13 February 2003 “On Internal Audition
of Public Sector” the Internal Auditing Unit has checked and verifi ed the merging proce-
dures of three prior regulatory entities. Through the audits conducted is concluded that legal
requirements set forth in the effective legislation have been respected in terms of economic,
fi nancial, administrative and managerial aspects. These audits, which were conducted in
the frame of special aspects of AFSA legal operation, have verifi ed adherence to the law.
1.3.6 Financial Statements
2006 AFSA Funding and Budget Pursuant to Article 26 of Law No. 9572, date 03 July 2006 “On the Albanian Financial
Supervisory Authority”, the AFSA is an independent institution, which is mainly funded
A N N U A L R E P O R T ‘ 0 616
by its own resources, except for any short-falls between fund resources and operation
expenses. In that case the short-falls are funded by the State Budget up to the level
when revenues are deemed suffi cient to ensure its normal operation. State Budget fund-
ing allocation is approved by the Parliament of Albania in the form of an independent
part of the State Budget. The budget surplus of the fi nancial year is transferred to the
State Budget revenues within 4 months following the end of fi nancial year, apart from the
funds set apart for investments which are in an ongoing phase.
Pursuant to Articles 33 and 37 of Law No. 9572, date 03 July 2006 “On the Albanian
Financial Supervisory Authority”, as well as, to Ministry of Finance Memo No. 8663/1,
date 21 November 2006, the 2006 AFSA budget was drafted based on the budget of prior
regulatory entities consisting of ASC, ISPPI and ISA respectively. AFSA opening bal-
ance sheet was certifi ed by an external certifi ed accounting expert.
AFSA drafts the fi nancial statements and holds its accounts pursuant to the Council of
Ministers Decision No. 248, date 10 April 1998 “On the Adoption of Local Government,
State Central and Local Institutions and the Subsidiary Units Public Accounts”, as well
as, the Ministry of Finances Guideline No. 14, date 28 December 2006 “On Drafting An-
nual Financial Statements”.
The approved resources and funds covering the AFSA establishment and operation (10
October - 31 December 2006) are presented in the following table:
000/ALLAFSA Funds Resource (11 October - 31 December 2006)
36,598Carried forward from three institutions (10 October 2006) .1
24,932Own revenues .1.1
11,666Budget financing .2.1
10,666 Operating expenses 1.2.1
1,000Investment budget 2.2.1
21,475Revenues generated by AFSA (11 Oct. .06 – 31 Dec. .06) .2
Total 58,073
Table 1: AFSA Revenue Resource
Pursuant to Articles No. 26 and 27 of Law No. 9572, date 03 July 2006, “On the Albanian
Financial Supervisory Authority”, revenues generated by the Authority from 11 October
2006 through 31 December 2006 includes revenues from insurance market, from trade of
securities, from pensions market, 20% of the collected fi nes, as well as, other revenues.
According to the fi nancial plan for 2006, expenses to cover payments for the staff mem-
bers who lost their jobs in the frame of three prior institutions reforms take up 14% of sala-
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 17
Table 2: Use of AFSA Funds
000/ALLUse of AFSA Funds (11 October - 31 December 2006)
23,027Funds for operating expenses .1
31,153Funds for investment .2
1,663Completed investments .1.2
29,490Ongoing investments .2.2
3,893Payments to State Budget .3
Total 58,073
ries’ fund or 9% of operating expenditures.
Investments are carried out according to the adopted fi nancial plan pursuant to stipula-
tions set forth in the Strategy for the establishment of the institution. Investments have
focused on IT programs, whereas the issue of offi ce building remains still pending for the
coming year due to delays linked with the availability of offi ce buildings.
A N N U A L R E P O R T ‘ 0 618
II. AFSA Activity
2.1 Regulatory Activity
2.1.1 Legal Changes
The adoption of the Law No. 9572, date 03 July 2006 “On the Albanian Financial Su-
pervisory Authority” led to an actual change of the non-banking fi nancial market su-
pervision because of the regulatory functions’ unifi cation of the three former regulatory
institutions. This law defi nes the establishment, the responsibilities and the functioning
of the Albanian Financial Supervisory Authority, as well as, it regulates the scope of
activity of this institution.
The changing of non-banking fi nancial market regulatory and supervisory structure made
it necessary to also amend the entire legal and regulatory framework related to differ-
ent areas of this sector. In this context, the end provisions of Law No. 9572 stipulate the
changes to be made regarding relevant laws, as well as, they defi ne the responsible struc-
tures for their implementation, notably:
a. In insurance area – Law No. 9267, date 29 July 2004, “On the Insurance, Reinsurance
and Intermediary Activity in Insurance and Reinsurance”,
b. In securities area – Law No. 8080, date 01 March 1996 “On Securities”
c. In private pensions area – Law No. 7943, date 01 June 1995 “On Supplementary Pensions
and Private Pensions Institutions”.
Insurance Law Changes regarding the Guarantee Fund In the frame of adhering to the National Plan on Implementation of Stabilization and As-
sociation Agreement with European Union (EU), amendments to Law No. 9267, date 29
July 2004 “On the Insurance, Reinsurance and Intermediary Activity in Insurance and Re-
insurance” have been prepared during 2006. These amendments refl ect a very important
aspect of EU directives about the insurance compa-
nies’ guarantee fund. These changes consist of the
amendment of Article 98 of this law, on the increase
of the guarantee fund to 3 million Euros, a process,
which has been planned to be completed in three
stages in the future.
Another important change, which has come up as a
need of implementing the law, is the amendment of
the annual report delivery deadline by the insurance
companies on their authorized accounting expert.
EU Directives about Insurance Companies Guarantee Fund
According to EU directives on “life” activity
2002/12 and on “non life” activity 373 L 0239 it
results that the guarantee fund has to be no less
than 3 million €. Time required to meet this legal
obligation is 5 years starting from the date of com-
ing into effect of this directive.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 19
2.1.2 Regulatory Framework Changes
Once the Law No. 9572, date 03 July 2006 “On the Albanian Financial Supervisory Author-
ity” came into effect, all the by-laws pursuant to laws covering the respective areas, which
were not in compliance with the provisions of this law, were repealed. In order to manage
the lack of regulation coming as a consequence of the aforementioned abrogation in terms
of internal administrative organization, specifi c functions, responsibilities of departments
and directorates and the communication procedures among them, the following were
drafted and adopted in two months time following coming into effect of the law:
• AFSA internal rules,
• AFSA Board functioning regulations.
Regulations adopted by FSA over 2006
In Insurance Area
1. Regulation “On the Limits of Insurance Companies Capital Investment”,
2. Regulation “On the Content of Reinsurance Program of Insurance Companies and the Timeframe
of its Delivery to AFSA”,
3. Regulation “On the Rules, Manners and Conditions of Insurance Companies Reporting to AFSA”
4. Regulation “ On Authorized Accounting Experts of Insurance Companies”,
5. Regulation “On the Basis, Calculation Methods and the Manners of Recording Mathematical Provisions”,
6. Regulation “On the Basis, Calculation Methods and the Manners of Recording Technical Provisions
of Non Life Insurance”,
7. Regulation “On the Criteria that must be met by Individuals Elected or Appointed in the Leading
Bodies of Insurance or Reinsurance Companies”
8. Guideline “On the List of Documents of Insurance and Reinsurance Companies Annual Mandatory
and Regular Reporting”,
9. Guideline “On the Rules of Disclosing the Data of Insurance Companies and Broker Companies in
the Frame of Transparency to the Public and Consumer Protection”,
10. Guideline “On Setting the Criteria of Reinsurance Companies, with which Insurance Companies
Conduct that operate in the Republic of Albania can enter into Reinsurance Agreements”,
In the Securities Area
1. Regulation “On the Financial Resources Requirements re: Licensed Individuals Who Operate
in Securities Area”,
2. Regulation “On Licensing, Fees and Commissions of Subjects that Operate in the Securities Market”,
3. Regulation “On Take-Over”,
4. Regulation “On Illegal Practices of Securities Trade” ,
5. Regulation “On Prospect”,
6. Regulation “On Conducting the Test of Individuals Applying for Receiving License as Dealer Agents”,
7. Regulation “On Procedures of Monitoring Retail Market on Securities of the Republic of Albania Government”,
In the Private Pensions Area
1. Regulation “On Procedures of Licensing and Reviewing the Applications about Issuing the Permit
to Operate as a Supplementary Private Pensions Institution”,
2. Regulation “On Supervision of and Financial Control of Supplementary Private Pensions Institutions”.
A N N U A L R E P O R T ‘ 0 620
Within a period of time of 6 months AFSA has reconsidered and adopted all relevant by-
laws adopted by prior regulatory authorities according to the areas. Their revision was con-
ducted based on the legal changes, new adopted rules and by refl ecting market needs.
2.1.3 Legal Changes Plan
The non-banking fi nancial market regulatory structure changed once the Law No.
9572, date 03 July 2006 “On the Albanian Financial Supervisory Authority” came into
effect. However, this change was not accompanied with adequate legal infrastructure
to meet the targets and responsibilities assigned by law, and therefore, resulted in dif-
fi culties in the interaction of market players. While enjoying a more independent status,
the target of the regulatory entity is to play a more active role towards taking the initia-
tives and issuing the regulatory measures. The target of establishing the institutional
infrastructure in insurance area will be to clearly defi ne the role of stakeholders’, AFSA,
Minister of Finance, Bank of Albania, supervised companies and of the operators’ or-
ganizations. This process is to be associated with the proposal for legal changes and
drafting of necessary legislation.
The fulfi llment of commitments made in the context of the National Plan regarding Imple-
mentation of Stabilization and Association Agreement and fulfi llment of obligations deriv-
ing from it in terms of implementing similar legislation will continue to remain a priority
across the three areas: insurance, securities and private pensions institutions.
Regarding the securities market, besides changes made to Law No. 8080, date 01 March
1996 “On Securities”, a cooperation program with European Bank for Reconstruction
and Development (EBRD which aims at drafting the necessary legislative and regulatory
framework on bonds issuance by joint-stock companies and local government units), is in
progress at this time.
The private pension institutions are also a target of the reform and therefore, the law
“On Supplementary Pensions and Private Pensions Institutions” and by-laws pursuant
to it are under drafting process in compliance with the government’s national reform in
pension’s area.
In order to apply Risk-Based methodologies and International Financial Reporting Stand-
ards (IFRS), drafts of sub-legislation regarding the insurance market are in progress. This
sub-legislation will refl ect, according to market developments, most recent directives.
The AFSA is discussing on the following:
• Draft/Regulation “On Defi ning Procedures to Attract Infl uential Participation
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 21
in Insurance and Reinsurance Companies”;
• Draft/Regulation “On Defi ning the Conditions and Criteria for Issuing and
Revoking the Actuary’s Authorization ”;
• Draft/Regulation “On Defi ning the Conditions and Criteria for Intermediaries
in Insurance ”;
• Draft/Regulation “On Defi ning the Claims Assessment Methodology”;
• Draft/Regulation “On Defi ning the Criteria of Licensing Loss Adjusters” seeking
here independence and better supervision;
• Draft/Manual “On Inspection Procedures”;
• Draft/Regulation “On Defi ning how to manage the Guarantee Fund ”;
• Draft/Regulation “On Defi ning the Procedures of Prohibiting the Insurance
Company Property Free Transfer”.
2.2 Licensing Activity
The target of AFSA is to ensure, by means of adhering to the requirements of the Law “On
the Albanian Financial Supervisory Authority” and the licensing requirements pursuant
to the respective area laws (insurance, securities, and supplementary private pensions), a
fair and regulated market through a process developed on the basis of justice, fairness and
equality.
The key principle of the Authority in the licensing process for the entities operating in the
non-banking fi nancial market is to set forth requirements, which are clear, fair and trans-
parent to the public.
2.2.1 Insurance Licensing Activity
Pursuant to the effective legislation, the Authority has responded in a timely fashion to
the applications for license by market operators, mainly regarding the activity expansion,
or changes to the capital stock and leading staff. This has involved careful examination
regarding consideration of the proper documentation, which has been presented by the
interested parties.
• Insurance Intermediaries Licensing The intermediary activity, as a negotiating and selling of insurance contracts by indi-
vidual or juristic entities licensed by AFSA, is focused on agents’ activity. The insur-
ance brokering activity is not present yet in the Albanian insurance market.
A N N U A L R E P O R T ‘ 0 622
The licensing of the following entities was accomplished over 2006 in the frame of
insurance intermediaries licensing process:
1) “Motor Insurance Agency – ASA” S.A. - ASA was established as a joint-stock
company according to Law “On Commercial Companies” and it was issued by
the respective regulatory Authority with license No. 4, date 12 April 2006 to
operate as an agents’ company in the area of selling non-life insurance prod-
ucts. Established by 7 shareholders, where each of them owns equal number of
shares, ASA developed an online system, which enabled online trading of non-
life insurance products through a computerized system pursuant to the Council
of Ministers Decision No. 192, date 25 March 2005 “On the Licensing Criteria and
Procedures for Insurance Agents and the Rules of Supervising their Activity”.
This online system provided for the fi rst time a fast and reliable service to the
companies and also to their customers.
In 2006, ASA operated as trading network for 7 insurance companies by applying
fi xed fees according to the contracts signed with these companies. During this
period, there were about 50 trading locations, which covered the entire territory of
Albania. The locations were connected online with ASA central offi ce and compa-
nies, with which contracts had been made regarding the sale of internal TPL motor
compulsory policies.
2) “Albanian Post S.A. - was issued with license Nr. 2; date 10 Mars 2006 to operate
as a trading agent for non-life insurance business. Additionally, Albanian Post met
all requirements of effective regulatory framework for individuals, which were ac-
cepted to operate as agents at the premises of this institution.
3) 16 individual agents of Insig S.A.. – They were licensed to operate as non-life
insurance agents on behalf of “Insig S.A.” insurance company on a 3-years license
term with the right of renewing the license. The license validity is linked with sign-
ing the contract with the insurance company and with the installation of online
trading program.
• Approvals regarding insurance companies:
1) The AFSA approved, upon Decision No. 5, date 03 March 2006, the changing of the
insurance company name from “Dukagjini Al S.A.” into “Eurosig S.A.”, following
changes in company shareholders and leading staff. The changing of the name
came as a result of the company’s strategy change in the management and opera-
tional aspect in the insurance market.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 23
2) The AFSA approved, upon Decision No. 6, date 03 March 2006, the license to per-
form reinsurance activity by “Sigal S.A..” insurance company. Point 3/c of Article 20
of Law No. 9267, date 29 July 2004, “On the Insurance, Reinsurance and Intermedi-
ary Activity in Insurance and re-Insurance” stipulates the case when a company
can be licensed by the Authority both as an insurance and reinsurance company at
the same time.
3) As of December 2006, AFSA approved establishment of representation offi ce in Ti-
rana for the insurance company “Intersalonika” General Insurance S.A. , which has
its headquarters located in Thessalonica in Greece. The goal of establishing this
offi ce is to conduct a market research and to set up the preparatory documentary
conditions to start its operation in the future as an insurance company in Albania.
The establishment of foreign companies’ representation offi ces is a new develop-
ment of the national insurance market.
Table 3: List of licensed insurance companies
Licensed Companies
Time of receiving the license
OwnershipType of Activity
0002.60.80 Government of Albania + EBRD + IFC
Life Insurance + Non-Life Insurance
S.A. gisnI .1
9991.20.30National Private CapitalNon-Life InsuranceS.A. amgiS .2
Non-Life Insurance3. Sigal S.A.
9. Sigal Life S.A.
National Private Capital + Albanian-American Fund
23.06.1999
1002.60.10National Private CapitalNon-Life InsuranceS.A. kitnaltA .4
1002.90.31National Private CapitalNon-Life InsuranceS.A. gisretnI .5
4002.90.01National Private CapitalNon-Life InsuranceS.A. nainablaretnI .6
4002.90.01National Private CapitalNon-Life InsuranceS.A. gisblA .7
4002.90.01National Private CapitalNon-Life InsuranceS.A. gisoruE .8
Life Insurance National Private Capital + Albanian-American Fund
10.09.2004
4002.90.01National Private CapitalLife InsuranceS.A. derciS .01
No.
During the last quarter of 2006, international insurance companies showed interest in
the Albanian insurance market in investing in Albanian insurance companies. Therefore,
changes are accepted to happen with the shareholder-structure of “Interalbanian”, “Alb-
sig”, ‘Sigal” and possibly other insurance companies.
A N N U A L R E P O R T ‘ 0 624
2.2.2 Licensing Activity in Securities Market
In 2006, the Authority’s target in relation to securities market has been to expand Gov-
ernment securities (T-Bills & T-Bonds) retail market by increasing the number of licensed
entities operating in this market.
AFSA is the regulatory body for Government securities retail market in the Republic of Albania
Government securities retail market is an OTC market where the trade is conducted through the physical or virtual
counters of the banks and other entities licensed to carry out transactions, with investors who can be individual or
legal entities, resident and non-resident persons.
Undertaking the activity of retail trade and keeping of the analytical register is performed by the entities licensed for
this purpose by the Albanian Financial Supervisory Authority. Keeping of the analytical register makes up one of the
conditions regarding licensing of dealers to operate in Government securities retail market.
The register ensures keeping of the records in an analytical manner for investors on Government securities ownership,
transactions carried out in connection with securities or data concerning their pledging as guarantees.
By end of 2006 securities market consisted of the following:
• 10 licensed companies which operate as securities dealers, of which
5 banks were entitled to the right of trade also in the T-Bills retail market.
• 14 licensed representatives of securities dealers.
• 5 licensed registrars of Government securities.
• Albanian Share Register, and
• Tirana Stock Exchange.
At the beginning of 2006, ALFA Bank commenced its activity as securities dealer and,
at the same time as T-Bills registrar. Credins Bank, which was licensed as of 08 May
2006 was added to the list of registrars in Government securities, thus increasing to 5 the
number of entities licensed for this activity.
In May 2006, the relevant Authority licensed the Italian-Albanian Bank as a securities
dealer. Based on the entity’s application, the license was issued for one year term. In De-
cember 2006, AFSA re-licensed as securities dealers two agents of “American Bank of
Albania”, which represent the entity in the trading activities conducted in the Stock Ex-
change and in the Government securities retail market.
The existence and development of Government securities retail market has raised the in-
terest of several entities either inside the country and abroad, which have demonstrated
their interest to become participants of this market.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 25
Table 4: Government Securities Dealers in 2006
Table 5: Government Securities Registrars in 2006
No. of RepresentativesCompanies Description No. License Term
No expiration term 1Tirana Bank S.A. .1
No expiration term 1Triumph Group S.A. .2
No expiration term 1Credins Bank S.A. .3
No expiration term 2Balkan Group-01 S.A. .4
No expiration term 1Raiffesen Bank S.A. .5
No expiration term 2National Commercial Bank S.A. .6
No expiration term 1Popular Bank S.A. .7
No expiration term 1Italian-Albanian S.A. .8
No expiration term 2American Bank of Albania S.A. .9
10. No expiration term 2Alfa Bank
Pursuant to Law No. 8080, date 01 March 1996 “On Securities”, to Regulation “On Securi-
ties Registrars Licensing” and to Regulation “On the Government of the Republic of Al-
bania Securities Retail Trade”, the following entities have been licensed to operate in the
capacity of registrar:
No. Licensed Entity Type of License License Term
1. Raiffesen Bank S.A. Government Securities Registrar No expiration term
2. American Bank of Albania S.A. Government Securities Registrar No expiration term
3. National Commercial Bank S.A. Government Securities Registrar No expiration term
4. Alfa Bank S.A. Treasury Bonds Registrar No expiration term
5. Credins Bank S.A. Treasury Bonds Registrar No expiration term
2.2.3 Entities Operating in the Supplementary Private Pensions Market
Pursuant to the Law No. 7943, date 01 June 1995, “On Supplementary Pensions and Private
Pensions Institutions” and to by-laws, there are 3 companies that operate in the supple-
mentary private pensions’ market. The law sets forth the requirements for establishing
pensions’ institutions by more than one employer. According to this law, one of these
employers should have at least more than 100 employees and no less than 500 employees.
A N N U A L R E P O R T ‘ 0 626
The following supplementary private pensions’ institutions, which are established and
operate in the Albanian market, meet this legal requirement:
• “GARANTSIG Pensions Private Institution”, was licensed by the relevant
Authority upon Decision No. 1, date 01 July 2005,
• “APFA – American Pension Fund of Albania”, was licensed by the relevant
Authority upon Decision No. 2, date 01 July 2005,
• “Pensions Private Institution CAPITAL” Company was licensed by the relevant
Authority upon Decision No. 3, date 12 December 2005.
2.2.4 Corporate Governance
In the frame of its efforts to increase its role in terms of improving the climate of corporate
governance, AFSA has targeted promotion and implementation of the OECD White Paper
“On the Principles of Corporate Governance in Southeastern Europe” through simultane-
ously identifying the most important areas, where reforms must be taken for proper cor-
porate governance.
In order to increase its role over corporate governance, the Authority has aimed at defi ning
clear criteria about the elected persons in the Supervisory Boards of the licensed entities,
in leading positions or in the auditing committee by insisting on improving integrity, pro-
fessionalism, experience and training.
The Albanian Financial Supervisory Authority is a mem-
ber of Albanian Corporate Governance Forum. Activities
and meetings of the Forum continued during 2006, where
the following are worth of mentioning:
1) The analysis of the fi ndings of the observation con-
ducted by OECD on the implementation status of
White Paper Recommendations.
2) The involvement of the Forum in providing knowl-
edge regarding the contemporary standards of the
corporate governance.
3) The signing of a Cooperation Memorandum between
the Albanian Corporate Governance Forum and Interna-
tional Financial Corporate (IFC) with the aim of meeting
short-term and long-term objectives regarding the im-
provement of overall corporate governance in Albania.
AFSA - Member of Albanian Corporate Governance Forum
Albanian Securities Commission (now
AFSA), as a cofounder, endorsed in 14
June 2005 the resolution on the establish-
ment of the Albanian Corporate Govern-
ance Forum.
The Forum was established as an organiza-
tion similar to a network of institutions and
organizations with interests, impact and
joint will regarding necessary improvement
of corporate governance practices in Alba-
nia. The goal of the forum is to provide its
contribution to the implementation of con-
temporary principles and standards of Cor-
porate Governance in Albania.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 27
2.3 Supervisory Activity
The Albanian Financial Supervisory Authority performs its non-banking fi nancial markets
supervisory functions through monitoring markets in general, and market stakeholders’
performance, in particular. The Supervision department is increasingly focusing on iden-
tifi cation, measuring, prevention and elimination of the scale of risks that threaten market
performance and, consequently, consumers’ interests. Risk-based supervision, as a new
model of non-banking fi nancial markets supervision, constitutes a detachment from the
traditional methods of static observation that included interventions only in cases of legal
infringements. Risk-based supervision is moving towards a contemporary analysis sys-
tem, where regulatory interventions start right after receiving early warnings that may
lead to deterioration of one or several parameters of operators in the market.
Risk-Based Supervision
The analysis of a company’s operations has traditionally been the method of supervision to make sure that the
company has adhered to the effective legislation and regulations, as well as, to make sure that fi nancial data have
been prepared in compliance with appropriate reporting methods and that they accurately refl ect the real fi nancial
condition of the company.
Risk-based supervision leads this method several steps ahead, so the supervisory process identifi es and focuses
on the areas, which include a high risk presence for the company and, which jeopardize company’s fi nancial
progress. Risk-based supervision does not audit fi nancial outcomes of the insurance company. Its focus consists
in identifying risks that impact the business and the managerial processes to prevent and minimize these risks.
Risk-based supervision takes into consideration every risk that the company faces and it identifi es risks through a
structured process. The supervision department checks how these risks are managed and it focuses on company
exposure against most critical risks. In this manner, the focus remains on the risks, managerial process, outcomes
uncertainty and their impact on the company’s progress.
The development and the stabilization of the market will bring, over time, a sophistication of these risk-based
supervisory methods.
AFSA performs its markets supervisory function through a) analyzing the documents (off-
site supervision) presented by the supervised entities, regular or ad-hoc reports, and b)
initiating on-site inspections of the supervised entities with the purpose of identifying the
data. On-site supervision and analysis may include a large scope of issues, or it may focus
on specifi c issues.
A N N U A L R E P O R T ‘ 0 628
Off-Site Monitoring Indicators in Albania
AFSA together with Word Bank held a Conference “On Insurance Financial Indicators Analysis” on 05-06 Decem-
ber in Hotel Tirana. Participants had the opportunity to attend a 1 day lecture on the Off-Site fi nancial indicators,
which are applied to review the fi nancial situation of non-life insurance companies. The goal of this conference was
to help all participants, companies’ representatives, external audits, and AFSA staff to have substantial knowl-
edge on the fi nancial indicators importance, how some of these indicators are calculated, and how to interpret the
outcomes when assessing the activity and fi nancial situation of the insurance companies. Following the lecture,
AFSA conducted a test involving all participants concerning their knowledge on the Off-Site fi nancial indicators.
All participants successfully passed the test and they received a certifi cate of profi ciency on the basic level of their
knowledge on fi nancial indicators. This lecture was attended by insurance companies’ managers, heads of different
AFSA sectors and by two auditing companies.
On Site Supervision – IAIS Standards
On-site supervision is a very important part of the supervisory process, which is closely linked with the ongoing
monitoring process. On one hand, inspection provides information that is supplementary to fi nancial and statisti-
cal analysis information submitted by the entities. On the other hand, On Site inspection needs to be supported
by market information and statistics that stem from fi nancial statement analysis (revenues and expenses, annual
balance-sheet). On-site supervision allows the supervisor to gather information and identify the issues that can be
identifi ed through continuous monitoring, notably as follows:
a. In the case of companies with problems concerning the activity, accounting irregularities or weaknesses
in management, on-site supervision allows the supervisor to identify problems that the company may have
willingly failed to take into consideration and, some times, even hiding them;
b. Provides the supervisors with the opportunity to establish a direct relationship with the company leaders,
which is very important in terms of being more closely familiarized with the efficiency of leaders’ work.
c. Allows the supervisors to make assessments both, in the frame of the decision making process by the
company leaders’ and in internal control effectiveness;
d. It may serve to advise companies to shun those types of activities, which may be illegal and inappropriate;
e. Provides the supervisors with the possibility of analyzing the impact of specific regulators and, very
often, gathering of information to conduct benchmarking against standards.
Reporting – IAIS Reporting Standards
a. Supervisory Authority:
• Sets criteria regarding presentation of financial information, actuarial reports and other information from all
licensed insurance companies under jurisdiction to the Authority in a regular fashion.
• Defines the goal and frequency of these reports and information including criteria that determine whether
In 2006, AFSA has set as priority the insurance market regulation and supervision based
on the weight that this sector bears in the frame of fi nancial market, as well as based on
its size and dynamics. Meanwhile, attention was not detached from cautious monitoring
and support for a sound development of securities and supplementary private pensions.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 29
2.3.1 Insurance Market
The Market Structure and SizeThere we ten insurance companies in the market in 2006, of which seven are non-life
insurance companies, two are life insurance companies and one company offers both non-
life and life insurance products. The number of policyholders in 2006 was 507,375 marking
an increase of about 9,5% compared to 2005. The increase in the number of policyholders
in 2006 led to an increase of the revenues from premiums written. Insurance gross written
premiums amounted to about 4,5 billion ALL, a fi gure 11,95% higher than that of 2005. The
market still remained inclined towards non-life insurance, which provided about 93% of
the premiums , thus leaving life insurance with about 7% of all the written premiums.
2006 Insurance Premiums Structure
Voluntary
Obligatory
34%
66%
Life Insurance
7%
Non-lifeInsurance
93%
these reports and information must become subject to auditing, or not,
• Requests, at least, an auditing report for every year,
• Requests more frequent and more detailed information as per the necessity,
b. Supervisory Authority:
• Asks insurance companies to present information about their financial situation on individual and group
basis. It can request and gather information about every office of the supervised company,
• Asks insurance companies to report every exposure outside the financial balance sheet,
• Asks insurance companies to report on delegated functions as other companies outsource,
• Requests that the appropriate level of insurance companies managers report on the timeframe and their accuracy,
• Asks that inaccurate information gets remedied and it has authority to impose sanctions about reporting
with fraudulent purposes.
• Asks insurance companies to present information about their financial situation on individual and group
basis. It can request and gather information about every office of the supervised company,
• Asks insurance companies to report every exposure outside the financial balance sheet,
• Asks insurance companies to report on delegated functions as other companies outsource,
• Requests that the appropriate level of insurance companies managers report on the timeframe and their accuracy,
• Asks that inaccurate information gets remedied and it has authority to impose sanctions about reporting
with fraudulent purposes.
A N N U A L R E P O R T ‘ 0 630
Monthly Progress of Insurance Gross Written Premiums in 2006
Compulsory Insurance Monthly Premiums (in thousand ALL)
0
100,000
Jan.
Feb.
March
Ap
ril MayJu
neJu
ly
Aug.
Sept
.Oct
.Nov
.De
c.
200,000
300,000
400,000
500,000
600,000
Life Voluntary Non-Life Compulsory
Compulsory Insurance Compulsory insurance products continued to dominate Albanian market in 2006, thus
generating about 66% of revenues from insurance gross written premiums. Due to
development specifi cs, the compulsory insurance market has not been liberalized in
terms of prices. The minimum and maximum prices for internal TPL and border policy
are determined once a year by the Ministry of Finance following recommendations
made by market specialists. Fixed prices determined several years ago are still applied
to the green card business.
0
100,000
200,000
300,000
400,000
500,000
2006 2005
Jan.
Feb.
March
Ap
ril MayJu
neJu
ly
Aug.
Sept
.Oct
.Nov
.De
c.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 31
• Insurance gross written premium revenues of internal TPL in 2006 was about 1,57
billion ALL. Revenues’ increase by 14,46% compared to 2005 was basically tied to the
increase of the fl oor price since May 2006, while the number of contracts remained
almost unchanged. The tendency of insurance companies to sell insurance TPL poli-
cies with prices lower than allowed fl oor levels decreased in 2006. This occurred as a
result of the following: a) enforcement of the Council of Ministers Decisions on real time
(online) insurance policies issuing and reporting and b) operators agreements concern-
ing the functioning ways of their sale networks. These shifts were accompanied by the
changes across shares of the market dominated by the operators.
• Green card revenues’ increase was in line with contracts number increase. In 2006
gross written premiums amounted to about 648 million ALL, or 11,72% more than in
2005. Due to the particularities of this insurance class such as duration and unlim-
ited liabilities, qualitative reinsurance remains a necessity for this class. In 2006, the
Authority decreased from fi ve to four the number of operators licensed to trade the
green card policy. Intersig S.A. insurance company did not manage to fi nd appropriate
reinsurance to meet the criteria of maximum coverage per hazard set forth in the law.
Actually, the licensed companies which issue green card policies, are: Insig S.A., Sigal
S.A., Sigma S.A. and Atlantik S.A.
• Border insurance marked the highest increase in the group of compulsory insurance
business at 25% compared to 2005. The increase in this market was a result of the in-
creased number of policies written in 2006, the increase of prices and the functioning
of a joint selling network for all market operators. In 2006 written premiums from border
policies amounted to about 528 million ALL.
Voluntary Insurance In 2006, number of voluntary insurance contracts increased by roughly 17%, while premiums
increased by 6,25% compared to 2005, thus reaching 1,53 billion ALL. Non-life voluntary
insurance business revenues remained at the level of 2005, while there was a considerable
increase by 29% in life insurance business compared to the previous year. This increase in
life-insurance products refl ects an increasing trend of consumer awareness regarding the
need of risk transfer in insurance companies. The voluntary insurance business market
remains still at low levels, however, we need to point out that we have unutilized potentials
in our country. Its development is closely linked not only with the economic level, but also
with the level of education and consumers’ trust on market operators.
• Property insurance during 2006 recorded 785 million ALL revenues. Fire and addi-
tional nature perils insurance products were ranked the fi rst with about 49% property
insurance revenues followed by guarantee insurance with 17%. There was a signifi cant
increase of fi re insurance in the second half of 2006, which was linked to the banking
system as the commercial banks required that their customers insure their proper-
A N N U A L R E P O R T ‘ 0 632
ties over the duration of the loan. Premiums and contracts increase from guarantee
insurance, based also on the specifi cs that they demonstrate, was associated with
the AFSA’s permanent monitoring and supervision towards determining the risk scale
undertaken by the operators, mainly through the phenomena of risk transfer from the
banks or other entities to the insurance companies..
• It is worth mentioning that, although the construction industry is well developed in
Albania, the engineering insurance products were at a low level within the group of
property insurance.
• Despite the importance they have at the existing stage of country’s development, li-
ability insurance also remained at low levels. Operators’ activities in the fuel, building,
hotels & tourism, etc., markets are, in most cases, not insured against damages that it
may cause to third parties. Professional liability in various fi elds also remains uncov-
ered by insurance.
• Revenues from personal accidents and health insurance in 2006 amounted to about
177 million ALL, thus marking an increase by 21% compared to 2005. Travel health
insurance made up most of this group with about 82% of this group revenues. The main
factor of the increase in travel health insurance written premiums is the continuous
increase in the number of individuals traveling abroad.
• Life insurance market in 2006 split into three following operators: Insig S.A., Sigal S.A.
and Sicred S.A.. Life insurance premiums were recorded at 308 million ALL.
Claims • Total claims paid by insurance companies in 2006 were about 1,28 billion ALL, or 7.5%
Voluntary Insurance Premiums Monthly Progress (in thousand ALL)
0
40,000
60,000
100,000
140,000
180,000
20,000
80,000
120,000
160,0002006 2005
Jan.
Feb.
March
Ap
ril MayJu
neJu
ly
Aug.
Sept
.Oct
.Nov
.De
c.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 33
Claims payment by non-life insurance companies in 2006 (in thousand ALL)
2006 Paid Claims Structure
more than in 2005. Due to the market structure described above, majority of paid claims
belong to compulsory insurance with 928 million ALL, or 73% of the total claims.
• Technical provisions make up a considerable part of liabilities in all insurance compa-
nies balance sheets. They also refl ect the incurred but not paid claims.
• It is worth noting that the Loss ratio at 35% is low compared to other countries
across the region. Moreover, this ratio is very low taking into consideration that com-
pulsory insurance occupies the main place in insurance structure. This indicates
that customers’ indemnifi cations are not assessed and paid at the proper extent by
the insurance companies.
0
100,000
SIGMA
SIGAL
INSIG
ATLA
NTIK
INTE
RSIG
ALBS
IG
INTE
R-
ALBA
NIAN
EURO
SIG
200,000
300,000
400,000
500,000
Non-Life
Life
99%
1%Voluntary27%
Mandatory73%
• While aiming at fulfi lling its key mission to protect consumers’ interests, the AFSA
is paying special attention to the addressing, assessment and payment process of in-
surance claims. All insurance companies became subject to on-site inspection con-
A N N U A L R E P O R T ‘ 0 634
ducted by the Authority during October-December 2006, which focused on the issue
of addressing the claims and their payment. Once the conclusions from the on-site
inspection were drawn, AFSA took disciplinary and penalizing measures against
some companies. Meanwhile, AFSA in cooperation with Albanian Insurers Asso-
ciation and stakeholders’ representatives has started a program on standardizing
claims reporting, handling, and payment procedures, closely tied with the review
and improvement of insurance contracts terms and conditions. The establishing of
a database for claims recording is a priority, which will serve not only supervision,
but also insurance companies towards development of tariff differentiation systems
based on claims experience.
Reinsurance • The amount of premiums ceded in reinsurance in 2006 was 486 million ALL, about
11% of gross written total premiums. Insurance companies have carried out portfoli-
os or specifi c reinsurance contracts in order to build capacity alleviate some fi nancial
effects incurred by large claims. Insurance companies have entered into reinsurance
agreements regarding the transfer of green card, property, internal TPL and debtor’s
life responsibilities. Reinsurance facultative contracts have supported companies’
original insurance contracts mainly in engineering insurance, marine insurance,
aviation insurance and liability insurance. The Financial Supervisory Authority has
monitored the agreements and reinsurance facultative contracts in compliance with
legal requirements of risk maximum retention and the criteria related to reinsurers’
quality. It is worth mentioning the quality improvement of reinsurers participating
in the renewing of companies reinsurance agreements carried out during October-
December 2006.
• An option to increase reinsurance effi ciency is the establishment of a joint scheme,
or facility for reinsurance, which will serve as a tool to make qualitative reinsurance
agreements having qualitative re-insurers as a target. There are different experi-
ences across the world such as pool reinsurance, or the existence of national rein-
surance companies. Such an idea is supported also by the World Bank and it can be
applied in the near future, following the analyzing of potential options of adminis-
tration approaches.
Insurance Companies’ Ranking in 2006• In 2006, Sigal insurance company kept on leading the non-life insurance market
with 27,34% of insurance premiums total. Meanwhile, Insig recovered its position
by moving up to the second position with 18,64% of premiums, thus leaving Sigma
Company behind in the third place with 18,40%. Other companies continue respec-
tively as follows: Atlantik – 11,39%; Intersig – 8,00%; Interalbanian – 7,05%; Albsig
– 5,95%; and Eurosig – 3,23%.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 35
SIGMA18.40%
ATLANTIK11.39%
ALBSIG5.95%
INTERALBANIAN7.05%
EUROSIG3.23%
SIGAL27.34%
INSIG18.64%
INTERSIG8.00%
INSIG42.39%SICRED
22.47%
SIGAL LIFE35.14%
• Insig insurance company maintained it position with 42,39% in life insurance,
followed by Sigal-Life with 35,14% and Sicred with 22,47% of premiums total.
• Sigma insurance company was ranked fi rst since it had paid 32,12% of the total claims
paid by companies. Other companies rank respectively as follows: Sigal – 25,28%; In-
sig – 17,63%; Intersig – 9,40%; Atlantik – 8,21%; Interalbanian – 3,61%; Albsig – 2,48%
and Eurosig – 1,28%.
Insurance Sector Financial Analysis The AFSA conducted in November - December 2006 with the World Bank technical
assistance an insurance market due diligence by reviewing its experience and existing
condition. The analysis helped with the identifi cation of market issues and phenomena
and the potential scenarios in the future.
The examining of the insurance sector fi nancial condition focused on companies’ as-
sessment through Insurance Regulatory Information System (IRIS), standards adapted
to non-life insurance companies in Albania. This examining included assessment of
claims administration, risk retention and insurance companies’ solvency as the initial
step towards AFSA’s full strategy with the goal of drafting initial conclusions and con-
tinuation of the supervisory activity further.
Financial reports of the above model are considered very important in terms of set-
ting up an early warning system as a key element of the modern model of risk-based
supervision. The target of early warning is to timely identify the issues that may affect
consumers’ interests and market stability, as well as, permanent monitoring and inter-
A N N U A L R E P O R T ‘ 0 636
vention or taking of relevant measures by AFSA.
• The majority of non-life insurance compa-
nies have a growth rate in compliance with
industry limits.
• Net retention ratio is relatively high in the mar-
ket. Industry standards are values between
40%– 80%, while the ratio in the Albanian
market is to an extent of degree of 87.8 %.
Although this would apparently be regarded
as low levels of ceding in reinsurance, large
amounts in absolute values are transferred
outside the territory. High rate of retention is
also connected with the insurance structure
in Albania. Internal TPL and border insurance
prevalence certainly has an impact on the high
retention rate by the companies.
Ratio Importance (IRIS fi nancial indicators) – Ratios Value Range
Ratio High End % Low end %
Premium growth rate + 40 - 40
Net Retention 80 40
Expense/Premiums Ratio 50 25
Claims/Premiums Ratio 80 50
Combined Ratio 105 85
Investment revenues 8 4
Other Revenues 1 N/A
Operating Ratio 101 80
Profi t Ratio 20 - 1
Capital to Gross Premiums 50 20
Capital to Technical Provisions 30 10
Solvency Ratio 300 150
IRIS tests on the fi nancial condition of insurance Companies in Albania in 2006
Net Retention Rate
Insi
g
Sigm
a
Siga
l
Atl
anti
k
Inte
r-Alb
ania
n
Alb
sig
Euro
sig
Inte
rsig0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
Premiums Increase Rate
Insi
g
Sigm
a
Siga
l
Atl
anti
k
Inte
r-Alb
ania
n
Alb
sig
Euro
sig
Inte
rsig
-60,00%
-40,00%
-20,00%
0,00%
20,00%
40,00%
60,00%
80,00%
Claims Ratio
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
Insi
g
Sigm
a
Siga
l
Atl
anti
k
Inte
r-Alb
ania
n
Alb
sig
Euro
sig
Inte
rsig
Expenditures Ratio
Insi
g
Sigm
a
Siga
l
Atl
anti
k
Inte
r-Alb
ania
n
Alb
sig
Euro
sig
Inte
rsig
0.00%
20.00%
40.00%
60.00%
80.00%
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 37
Combined Ratio
0.00%20.00%40.00%60.00%80.00%
100.00%120.00%
Revenue Investment Ratio
-5.00%0.00%5.00%
10.00%15.00%20.00%25.00%30.00%
Insi
g
Sigm
a
Siga
l
Atla
ntik
Inte
r-Al
bani
an
Alb
sig
Euro
sig
Inte
rsig
Insi
g
Sigm
a
Siga
l
Atl
anti
k
Inte
r-Alb
ania
n
Alb
sig
Euro
sig
Inte
rsig
Other Revenue Ratio
0,00%
2,00%
4,00%
6,00%
8,00%Operating Ratio
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Insi
g
Sigm
a
Siga
l
Atla
ntik
Inte
r-Al
bani
an
Albs
ig
Euro
sig
Inte
rsig
Insi
g
Sigm
a
Siga
l
Atla
ntik
Inte
r-Al
bani
an
Albs
ig
Euro
sig
Inte
rsig
Insi
g
Sigm
a
Siga
l
Atl
anti
k
Inte
r-Alb
ania
n
Alb
sig
Euro
sig
Inte
rsig
Insi
g
Sigm
a
Siga
l
Atla
ntik
Inte
r-Alb
ania
n
Alb
sig
Euro
sig
Inte
rsig
Capital Ratio vs. Gross Premiums
0.00%
100.00%
200.00%
300.00%
400.00%
Capital Ratio vs. Technical Provisions
0.00%50.00%
100.00%150.00%200.00%250.00%
Insi
g
Sigm
a
Siga
l
Atla
ntik
Inte
r-Alb
ania
n
Alb
sig
Euro
sig
Inte
rsig
Insi
g
Sigm
a
Siga
l
Atl
anti
k
Inte
r-Alb
ania
n
Alb
sig
Euro
sig
Inte
rsig
Solvency Ratio
0.00%300.00%600.00%900.00%
1200.00%1500.00%1800.00%2100.00%
Profit Ratio
-10.00%0.00%
10.00%20.00%30.00%
40.00%50.00%
A N N U A L R E P O R T ‘ 0 638
• Positive trends of market indicators can be observed at fi rst sight; however, the Loss
ratio and Expense ratio, in general, still continue to be at levels which are far from ac-
ceptable. This is a situation, which has been inherited over several years, and, there-
fore, it will be in the AFSA’s focus of attention to normalize it through drafting new risk
management strategies and improving the legal framework that affects claims.
• The combined ratio across the majority of companies complies with the low end and
high end limits. The Authority’s goal is to maintain the combined ratios of companies
within industry limits by demanding modifi cation of the trends of its component parts.
• The operating ratio for the majority of companies falls within the maximum and mini-
mum limits set by industry.
• It is noticeable that the majority of insurance companies have an investment return,
which is lower than the industry minimum rate of 4% and, which is essentially linked
with the size of companies’ assets rather than with the premiums’ revenues.
• With regards to other income ratio, the majority of insurance companies have a higher
rate return than the minimum limit of 1% set for this ratio.
The monitoring of Companies Balance Sheets Elements
The AFSA has monitored the balance sheets of companies based on legal requirements
and accounting standards. The process was focused on verifi cation of liabilities elements
(assets and liabilities of every company) and, then, on reviewing their compliance with
assets items in value and time.
• The AFSA has permanently pursued adherence to the legal requirement on insurance
companies guarantee fund and application of rules for its investment. Actually, insur-
ance companies possess the guarantee fund invested in “frozen deposits” at second
tier banks on 1-year term basis and T-Bills as per the law requirements;
• The AFSA has verifi ed by the end of every quarter the minimum limit of companies’
solvency margin as per the law requirements and solvency which makes up, at the
same time, also their capital and the investment policies;
• Companies’ fi nancial analysis has also included the auditing of database and calcula-
tions carried out in relation to technical and mathematical provisions of the companies
by the end of every quarter. The AFSA audit was accompanied by the respective com-
ments and the assessment of technical provisions’ suffi ciency. Once the suffi ciency
has been assessed , the Authority has conducted verifi cation of assets that would cover
the technical and mathematical provisions.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 39
• Total of Insurance market assets by 31 December 2006 amounted to about 11,4 bil-
lion ALL marking an increase to an extent of 11,69%, compared to 2005. This in-
crease was refl ected mainly in investments in T-Bills and real estate by 30.89% and
23.97% respectively;
• The bank deposits amounted to about 3,3 billion ALL, thus comprising also the highest
item of market assets to an extent of 28.94 % of total assets. The receivables remain still
high at 1.118.206.723 ALL, making up about 9% of assets in the insurance sector;
• The compulsory insurance premium increase in 2006 led to a positive change of the
market fi nancial situation, to an improvement of cash fl ow, to the increase of the com-
panies’ investment potential. The increase in investment potential has brought about
an improvement of assets quality towards liquid investments guaranteeing coverage
of technical and mathematical provisions with high quality assets.
Table 6: Insurance Market Balance Sheet
Balance Sheet
(*) 2006 data are operational
31.12.2005 31.12.2006 (*)
352.324.203.3 391.233.774.3Deposits
674.585.150.1 256.952.848Land and constructions
910.707.849 915.111.458Stock and Shares
301.972.492.2 122.118.257.1Treasury Bonds
327.602.811.1 277.121.559Debtors-Receivables
533.262.496.2 947.579.723.2Other Activities
909.364.904.11 601.216.512.01Total Assets
506.076.873.5 527.870.719.4Gross Technical Provisions
439.061.003 553.988.906Other payables
073.236.037.5 620.446.886.4Own Capital
909.364.904.11 601.216.512.01Total Liabilities
2.3.2 Securities Market
The securities’ market continues to be prevailed by trading in the primary and secondary
market of the Government debt instruments (T-Bills and T-Bonds), while the securities
stock market remains still undeveloped and mainly limited in the off-exchange market
registered in the Albanian Share Register.
In the recent years, various national and international entities have shown an increasing
interest to operate in the securities market.
A N N U A L R E P O R T ‘ 0 640
The Authority’s supervisory activity in the securities domain has mainly focused on per-
manent follow up of market indicators development. In addition, in order to have a more
confi dent and real assessment of these indicators, the AFSA has set as a priority the regu-
lar reporting process standardization to be performed by operators on the securities mar-
ket day-to-day trading data.
The Government Securities Retail Market
The retail market of Government securities is the most developed securities market in the
country. Even during 2006 this market was totally dominated by short-term instruments
(T-Bills). The expansion of the market including other operators and deepening it further
with longer maturity term Government securities is expected to also increase the transac-
tions’ volume in the retail market of these instruments.
2006 marked a relatively satisfactory fl ux of transactions in the Government securities
retail market, which has experienced an increase compared to the prior year. The total
amount of transactions in the Government securities retail (secondary) market in 2006
was roughly about 20.912,14 billion ALL (compared to 1.518,80 million ALL in 2005). The
total number of transactions carried out in this market over the same period was 6065
against 42 in 2005.
Table 7: Government Securities Retail Market in 2006
Quarter I Quarter II Quarter III Quarter IV Type of Transaction (in million ALL) Nominal
ValueNominal
ValueNominal
ValueNominal
Value
No.Trans.
No.Trans.
No.Trans.
No.Trans.
1. Purchase in the Primary Market
Individuals 2.058,93 992 756,97 272 695,18 239 1.649,37 686
Juristic Persons 706,76 17 880,25 13 874,64 14 1.939,81 19
2. Selling from Bank Portfolio 2.891,33 1445 725,61 305 1.442,17 588 1.460,05 602
3. Purchase from individuals prior to maturity date
115,34 74 227,53 138 1.181,27 126 213,33 87
4. Payment of nominal value in maturity date
209,36 48 814,77 78 940,89 66 1.094,00 195
5. Pledging of Government securities as collateral
2,53 2 7,72 18 8,12 18 16,11 23
Total 5.984,25 2578 3.412,85 824 5.142,27 1051 6.372,67 1612
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 41
Thus, the increase of the transactions’ volume in this market compared to 2005 has oc-
curred as a result of the decentralization of the Government securities register and trans-
ferring of this activity to the banks licensed by the AFSA to exercise their activity in the
retail market. This has enhanced banks inclination to provide to their customers a fi nan-
cial product, different from deposits. Additionally, experience has indicated that also the
increasing of public awareness on investing in Government securities has a special impor-
tance concerning boosting of transactions volume in this market.
Stock Market The stock market still remains the most undeveloped sector of securities market in Al-
bania. It consists of the formal market (Tirana Stock Exchange), licensed dealers to trade
securities and informal market of transactions on the shares of joint-stock companies.
Tirana Stock Exchange, which was established
since 1996, is a state-owned company with Minis-
try of Finance as the single shareholder and it was
licensed by Albanian Securities Commission (now
AFSA) as an organized market for shares and de-
bentures. Despite permanent efforts, this institu-
tion has not managed to become attractive for the
domestic companies. Actually, there are no compa-
nies listed in Tirana Stock Exchange, while Govern-
ment securities trading in this market is inexistent.
The existing conditions, in which the economy of
the country is facing accompanied by the need for
a fast and sustainable growth, which implies an increase of the demand for investments
from the private and state sector, request the immediate start and not postponing of the
process of stock market development. In this context, the Government may play an im-
portant role towards encouraging the development of this sector mainly through privatiz-
ing any package of shares of state-owned strategic companies in the stocks market or, by
means of providing various fi scal and legal incentives to encourage domestic business to
utilize this market as a fi nancing alternative by listing in the stock exchange.
Off-exchange stock market is not an organized one and it mainly consists of transactions
executed between shareholders of privatized companies. This market continues to be
active, although it has kept declining over years as result of property consolidation these
privatized companies. Pursuant to Law No. 7638, date 19 November 1992 “On Commer-
cial Companies” all companies, which consist of more than 50 shareholders, have to be
registered in a specialized independent registered. Therefore, registration together with
clearing and settlement of accounts for transactions executed in shares is conducted by
the Albanian Share Register (ASR).
Tirana Stock Exchange
Tirana Stock Exchange S.A., has a l icense to
operate as a securities organized market for
2 years until 01July 2007. The license serves
for Government securities trading, companies
debt and shares. 2 year l icensing is condi-
tioned with the duty of drafting and reporting
to AFSA of the plan for taking steps to gradu-
ally shift from state ownership and preparing
of potential public companies to register them
in Tirana Stock Exchange.
A N N U A L R E P O R T ‘ 0 642
ASR is a shareholding company registered with
AFSA as a registrar of property securities. Apart
from electronic registration (Book-Entry) of prop-
erty rights for companies, ASR provides also other
corporate actions for the registered companies. 48
companies are actually registered in the ASR, of
which 15 are fi nancial institutions (4 commercial
banks, 9 insurance companies, 1 securities regis-
trar and Social Insurance Institute).
The total number of registered companies in ASR
during 2006 experienced a decline of 31,4% com-
pared to 2005. Only shares of 18 companies were
traded in the off-exchange market. A total of 140
transactions were executed including a total number of 1.637.755 shares compared to
554 transactions executed in 2005 with a total number of 1.002.886 shares. The number
of traded shares in the off-exchange market over 2006 makes up about 8.89% of all stock
of companies registered with ASR, something which indicates the low rate of liquidity
that characterizes this market.
Albanian Share Register (ASR)
ASR operates since 2002 since it was licensed hav-
ing as its scope of work the registration of joint-stock
companies’ shares. These companies with over 50
shareholders are subject to the legal obligation of
keeping their stocks register in an independent
registration center. Albanian Share Register (ASR),
apart from keeping the register, also conducts its
record updating on executed transactions. Like-
wise, ASR provides also the following services:
• Announcement of general meeting of share-
holders assembly,
• Dividends calculation.
Table 8: Statistics on the Off-Exchange Stock Market in 2006
Source of Data: Albanian Share Register
No. Classification Statistic
1. Total number of companies registered in Albanian Share Register 48
2. Total number of stocks of companies registered in Albanian Share Register 18.410.025
3. Total number of companies whose stocks have bee traded 20
4. Total number of transactions executed over 2006 140
5. Total number of stocks traded over 2006 1.637.755
6. Percentage of transactions traded over 2006. 8.89 %
It is diffi cult to assess the evolution of the off-exchange stock market in Albania, mainly
due to the lack of information on stock trade prices, which hinders calculation of real indi-
cators of this market assessment. In addition, lack of information on the activity and fi nan-
cial statements of these companies leaves room for “price distortions”, because it does not
present the real supply of these securities, thus leaving the minor investors who own stock
of these companies, without protection.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 43
2.3.3 The Supplementary Private Pensions’ Market
The Development of Supplementary Private Pensions InstitutionsThe pensions’ system in Albania is at a low level of development compared to the region
countries. This system is essentially based on state funded pillar, which is otherwise rec-
ognized as Social Insurance Scheme (PAYG or, Pay-As-You-Go System).
The existence of pensions third pillar in Albania is still in its earlier stages. Regardless
the adoption of the Law ”On Supplementary Pensions and Private Pensions Institutions”
as of 1995, the activity of the fi rst companies in private pensions area commenced in 2006.
Over this time, these companies have paid very much attention to marketing, work with
employers and individuals to attracts as many contributors as possible. Regardless of
this fact, the existing private pensions institutions have a number of contributors, which
stands at minimum levels required
by legal framework. On the other
hand, lack of foreign companies in
this market, due to legal restric-
tions, renders competition between
domestic companies insignifi cant.
In 2006, total of supplementary pri-
vate pensions market contributors
is about 2621, thus accumulating a
fund of about 13,15 million ALL.
The Companies’ Market Data:
• “Garantsig Pensions Private Institution S.A.” has started its activity as of 01 January
2006. From January to December 2006, the company had a fi gure of about 892 con-
tributors with about 2,62 million ALL of contributions.
• “APFA – American Pension Fund of Albania S.A.” started its activity as of 01 Janu-
ary 2006. From January to December 2006, the company had a fi gure of about 1122
contributors with about 9,27 million ALL from contributions, which were invested in
T-Bills.
• Private Pensions Institution “Capital S.A.” started its activity as of 01 March 2006. From
March to December 2006 this institution collected 1,26 million ALL from contributions,
totaling about 607 contributors. The contributions have been invested in T-Bills to an
extent of 90%, while the rest were invested in bank deposits.
Third Pillar
It implies individual savings and supplementary contribution by the
employer. This scheme provides supplementary incomes for individu-
als who are willing to benefi t higher pensions when they retire. Ex-
perience from several countries has indicated that investing a part
of savings in pensions private funds is a good way of investment for
retirement. The Income from supplementary schemes are a very im-
portant component for the retirees.
A N N U A L R E P O R T ‘ 0 644
Private Pensions’ Market Structure in 2006
GRANTISIG20%
GRANTISIG43%
CAPITAL10%
CAPITAL23%
APFA70%
APFA34%
Pensions Private Funds Market(according to contributions)
Pensions Private Funds Market(according to contributors number)
Supplementary and private pensions institutions have been subject to on-site supervision
by AFSA. The goal of inspections conducted on these companies has essentially consisted
in the verifi cation of the following:
i) The respecting of legal requirements regarding pensions institutions in the course of
performing their activity;
ii) The investment of the guarantee fund;
iii) The collection of revenues from contributions and their investment;
iv) The members’ individual accounts;
v) The implementation of the business plan drafted by private pensions’ institutions.
Third Pillar Future Development Based on the importance that third pillar presents in the frame of pensions’ system, as well
as, based on the limitations of the existing legal framework concerning the organization
of this pillar, the conclusion is that its development needs fundamental changes basically
focused on these following directions:
• The full revision of legal framework. The existing law needs signifi cant improvements,
which must be brought up to international standards and, which must align with the coun-
try developments as a goal;
• The stimulation and involvement of employers and individuals in these schemes through
developing legal and fi scal incentives;
• The enhancement and strengthening of the elements of the guarantee and the proper ad-
ministration of private pensions’ institutions;
• The promotion and development of stock market in the country, as this is closely connected
with pensions’ market development.
Taking measures to meet the aforementioned requirements will necessarily bring about
positive outcomes in the Albanian market of supplementary private pensions.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 45
2.4 Institutional Relations
2.4.1 Cooperation with Domestic Institutions
The Albanian Financial Supervisory Authority has an important role in development and
maintenance of solid fi nancial stability for the country’s economy. In this context, efforts
have been made to develop a positive climate of cooperation with important fi nancial insti-
tutions in the country, such as the Ministry of Finance and the Bank of Albania. In addition,
AFSA represents a serious partner for the Government in terms of supporting acceleration
of reforms, which have to do with non-banking fi nancial sector’s development. In 2006, the
AFSA has cooperated also with other domestic institutions regarding improvement and
coordination of work with stakeholders, which have connections with its activity.
An important element of institutional cooperation is also the signing of Memorandums of Co-
operation and Understanding between the AFSA and other regulatory institutions in the coun-
try. The goal of these agreements consists in coordinating the regulatory activity among regu-
latory entities of similar domains, as well as, the exchange of information with other important
institutions, which play a determinant role in the development of the country (see Table 9).
Financial Stability Advisory Group (FSAG)
Article 30 of Law No. 9572, date 03 July 2006, “On the Albanian Financial Supervisory Authority” explicitly specifi es
the establishment and functioning of a new structure, Financial Stability Advisory Group (FSAG), which:
• Aims at coordinating the supervisory and regulatory work and assists in the development of joint policies in the
financial system of the country,
• Ensures exchange of information between financial institutions, which are group members.
• Assists in protection, stability and development of financial markets in the Republic of Albania, as well as, in the
improvement and increasing of efficiency of control over the operators of these markets.
FSAG Members
• Minister of Finance; • Chairperson of FSA Board; • Bank of Albania Governor
In December 2006, AFSA signed a Memorandum of Under-
standing with the Competition Authority. The scope of this
agreement consists in provision of bilateral assistance with
regard to information exchange. The target of this agreement
is to set bilateral rules to ensure a free and effective compe-
tition pursuant to nondiscrimination policies regarding enti-
ties that operate in areas, which are subject to the AFSA own
regulatory and supervisory functions.
A N N U A L R E P O R T ‘ 0 646
2.4.2 Cooperation with International Institutions
The rapid development of international fi nancial markets, the unifi cation of regulatory and
supervisory standards, as well as, the involvement of regulators of relevant countries in the
implementation of these “general principles” has led to the intensifi cation of the AFSA’s
contacts and the exchange of experiences with its counterparts and to the consideration
of participation in international organizations as priority task. International cooperation
becomes more intensive due to the need of enforcement of EU Directives and implementa-
tion of Stabilization and Association Agreement.
Table 9: Membership and Signed Cooperation Agreements
A. Agreements Signed with Organizations Inside Albania Year Institution
- Faculty of Law 2002 ASC (now AFSA)
- Authorized Accounting Experts Institute (AAEI) 2003 ASC (now AFSA)
- General Directorate of Road Transportation Service 2003 ISA (now AFSA)
- Bank of Albania 2005 ISA, ASC (AFSA)
- Competition Authority 2006 AFSA
B. Agreements Signed with Counterpart Institutions outside Albania Year Institution
- Stock Market Commission of Greece 1999 ASC (now AFSA)
- Securities Commission of Quebec 2000 ASC (now AFSA)
- Securities and Stock Exchanges Commission of Italy 2000 ASC (now AFSA)
- Stock Market Agency of Slovenia 2003 ASC (now AFSA)
- Securities and Stock Exchanges Commission of Poland 2003 ASC (now AFSA)
- Stock Market Board of Turkey 2003 ASC (now AFSA)
- Financial Market Supervisory Commission of Bulgaria 2003 ASC (now AFSA)
- Kosovo Banking and Payments Authority 2004 ISA (now AFSA)
- National Securities Commission of Rumania 2005 ASC (now AFSA)
- Securities and Stock Exchanges Commission of Macedonia 2005 ASC (now AFSA)
- Securities and Stock Exchanges Commission of Montenegro 2005 ASC (now AFSA)
- Securities Commission of Croatia 2005 ASC (now AFSA)
C. Membership in Regulators International Organizations Year Institution
- IOSCO (International Organization of Securities Commissions) 1998 ASC (now AFSA)
- IAIS (International Association of Insurance Regulators) 2001 ISA (now AFSA)
- IOPS (International Organization of Pensions Regulators) 2006 AFSA
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 47
Membership in International Organizations The AFSA is a full member of regulators’ international organizations in the areas of insurance
and securities carried over from the respective prior authorities. Additionally, AFSA recently
signed an agreement on becoming a full member of the International Organization of Pension
Regulators (IOPS). The target of active participation in these organizations is to increase bi-
lateral cooperation in support of most effective regulation of these markets at an international
level. This cooperation has consisted in the exchange of information and experiences, coordi-
nation of efforts regarding setting of regulatory and supervisory standards and provision of a
joint assistance in relation to protection of non-banking fi nancial markets integrity.
International Association of Insurance Supervisors (IAIS) – Membership in this or-
ganization has assisted the AFSA basically to improve the insurance area regulatory legal
framework through introducing international standards and to apply this legal framework
in practice. From this perspective, AFSA has had permanent contacts with various IAIS
bodies through permanent participation in trainings, workshops, conferences, as well as, in
annual meetings of the members of this organization.
International Organization of Securities Commissions (IOSCO) – Enjoying the IOSCO
member status, AFSA has, in 2006, continued its cooperation with this organization by par-
ticipating in the Committees and Working Groups established on various issues. Moreover,
the target of AFSA has been to become a signatory-country in the Multilateral Memoran-
dum of Understanding and Assessment Methodology (MMoU), signed by majority of IOSCO
members, which are developed countries. The goal of this agreement is to boost interna-
tional cooperation, establish the information exchange system in order to achieve an in-
creasingly effi cient supervision on the operators and fi nancial services of stock markets in a
global scale. AFSA has to meet up to 2010 all legal and regulatory adjustments and become
subject to an assessment in order to be qualifi ed to sign MMoU. Same process occurs also in
the case of MMoU in IAIS. Therefore, the AFSA faces major responsibilities and challenges
concerning revision of the overall legal package of the areas under its jurisdiction.
International Organization of Pensions Supervisors (IOPS) – Right after its establish-
ment as new regulatory institution, the AFSA determined procedures to become e member
of IOPS and it accomplished its goal by becoming its full member in December 2006. The
functioning goal of this organization consists in the international promotion and coopera-
tion in the area of pensions market regulation. In addition, IOPS serves as an open forum
for the discussion of development policies of this market, as well as, for the exchange of
experiences and information.
Cooperation with Counterpart Institutions The AFSA has continued good bilateral relations with similar Authorities, which regu-
late and supervise non-banking fi nancial markets across countries. These efforts were
substantiated with the signing of the Memorandum of Understanding with several coun-
A N N U A L R E P O R T ‘ 0 648
terpart Authorities. The main benefi t of signing and implementation of these agreements
consists of bilateral relations establishment to facilitate exchange of confi dential infor-
mation as a key instrument in terms of a friendly, fast and effi cient functioning of best
international practices in the area of fi nancial markets regulation. Pursuant to this positive
situation, the AFSA is working on expanding cooperation with other similar institutions
through drafting of several new agreements with some of the developed countries.
Cooperation with Partners (Donors) Donors have been serious partners and a very important supporting factor in relation to in-
stitutional establishment of the AFSA, as well as, promotion and development of particular
links of the activity of this institution.
Cooperation with World Bank (WB) – being the key and
most important partner, WB has assisted and supported the
overall regulators unifi cation process and the AFSA institu-
tional set-up. In addition, WB has provided a real support
also in connection with conducting of a series of trainings
by well-known international experts and lecturers. Devel-
oping human resources and providing further training on
specifi c issues not only involving AFSA staff, but also non-
banking fi nancial market operators has also been the goal
of these trainings.
Cooperation with FSVC (Financial Services Volunteer Corps) – has been effi cient
especially in the frame of drafting human resources management policies and training of
specialists of a very specifi c area of insurance market such as actuary.
Cooperation with European Bank for Reconstruction and Development (EBRD) – has focused in the area of drafting necessary legislation for the issuance of corporate
bonds, as well as, municipal bonds.
Activities, Conferences and Trainings Membership in international organizations and cooperation
with counterpart Authorities is considered as an opportuni-
ty to exchange experiences, brainstorm on common issues
and to develop human resources through trainings, In this
sense, the AFSA has demonstrated its interest through an
active participation in meetings, conferences, workshops
and in various trainings held at regional and international
level where issues of insurance, securities and pensions
markets have been addressed.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 49
2.4.3 Public Relations Policies
The Albanian Financial Supervisory Authority considers public information very impor-
tant in terms of protecting consumers’ interests to the best extent possible. Therefore,
a special attention is paid to transparency of supervisory and regulatory activity of the
AFSA as well as to the availability and accessibility of the information to the public. In
this context, the AFSA, following its establishment, went on with its successful practice
of prior regulatory entities in terms of publication of information and statistical reports on
the development of various non-banking market sectors.
A specifi c attention has been paid to the AFSA’s presentation in media essentially through
participation in conferences and workshops where important issues, which affect develop-
ment of Albanian economy, are topics of discussion. In addition, in order to stay closer to
the community, work has already started on the AFSA’s offi cial webpage, which will be an
important communication tool that would link the regulatory entity with the public.
2.5 Information Technology
The AFSA is working on a strategy regarding the development of Information and Tech-
nology (IT) that would apply to the institution itself and to the market. This IT strategy
would meet the supervisory needs of the market through implementing a risk-based
supervisory model application.
In order to effi ciently meet legal obligations, the AFSA needs an Integrated Information
System, which completes and processes all the information needed as a part of the institu-
tion activity, while it ensures stability, certainty and continuation of work processes.
Such a system has the following advantages:
• The establishment of a database for the overall insurance market, which will be
used not only in daily monitoring of insurance companies, or in the case of on-site
inspections conducted by inspectors, but it will also be used by companies to avoid
fraudulent cases and misrepresentation of facts. This database will be useful in the
future in implementing more effi cient methods in setting premiums based on poli-
cyholder’s background etc.
A N N U A L R E P O R T ‘ 0 650
• The minimization of technical errors by the experts due to different platforms’ applica-
tion, which will make the information released by the authority more reliable.
• It will provide higher effi ciency of work-processes and it will decrease the time needed
to process information.
• It will enable the use of “software programs” in the AFSA fi nancial activities, which
are recognized by the tax authorities or auditing entities. The use of such software
programs will make the activity of AFSA more transparent.
• The computerization of the data and of all records to facilitate and enable faster process-
ing of paper work.
• The data of non-banking fi nancial sector are in a computerization process.
• It will provide higher effi ciency by shortening the manual process of data input. At
the same time, it will enable the experts to put in more efforts and time into other
projects.
• It will provide an opportunity to reconcile the statistical data from this database with
the fi nancial data, as well as it will enable cooperation with counterpart institutions
which operate in fi nancial markets.
• Insurance risk and investment risk will be assessed more accurately;
• Portfolio diversifi cation of licensed entities will get more clarifi ed.
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 51
III. Future Perspective
The AFSA’s fundamental goal is to protect consumers’ interests along with ensuring fi -
nancial stability of operators in the market as well as law enforcement. The Authority’s
focus in the future will be the regulation and improved supervision of non-banking fi nan-
cial sector, which will have an impact on the signifi cant increase of the role of insurance,
supplementary private pensions and securities in fi nancial market and overall Albanian
economy. This will have a positive impact in the stability of the economy of the country.
The revision of legislation in compliance with development needs and its harmonization
with European Union directives comprises one of basic priorities of the institution towards
markets’ regulation according to international standards. The increase of the guarantee
fund, already passed by the Parliament, and the introduction of international fi nancial
reporting standards (IFRS) by 2008 will be followed by other AFSA initiatives such as
improved legislation that would comply with EU directives. The target of improved legal
framework will be to build a safer environment for the operators’ activity across supervised
markets. On the other hand, the AFSA will closely cooperate with all the other structures
in terms of passing legislation in accordance with market development and market de-
mands, as well as, ensuring Compliance with such legislation.
The transition from the traditional supervisory model to the risk based one relying on Eu-
ropean countries practice will constitute AFSA’s priority in the supervisory perspective.
The new risk-based supervisory approach is expected to be backed up by a new electronic
reporting system, which will guarantee fast and reliable communication, improvement
of analysis’ capacity, improvement of warning system and, eventually, improvement of
quality and effi ciency of the overall AFSA’s supervisory activity. The Authority is already
cooperating with counterpart institutions in Europe in order to examine various system
models and their effi ciency in supervision in the respective countries. The drafting and
revision of AFSA’s regulation and internal manuals, regarding on-site supervision and
other risk based supervision activities, will take place at the same time of the application
of the new supervisory model.
The promotion and encouragement of markets’ development, and non-banking fi nancial
services and products will remain in the focus of AFSA work over the next period. Such
a goal will be attained not only through quality improvement of the existing services and
products, but also through improving the range of the products offered in order to meet
the consumers’ needs. Better quality of corporate governance is needed in the improve-
ment of risk management and the reduction of administrative costs. The AFSA will pay a
special attention to quality improvement of corporate governance. Our goal is to ensure
the capability, possibility and good will in the governing of the supervised operators.
Increasing consumers’ awareness and knowledge regarding the products offered will
be part of a large campaign that the Authority will initiate in cooperation with market
operators. The goal of this campaign will consist in making consumers aware of the
role and importance of insurance, supplementary pensions and other fi nancial outputs
A N N U A L R E P O R T ‘ 0 652
in the market. This campaign will provide awareness and knowledge of products that
will ensure fi nancial stability of Albanian households and businesses and will improve
overall life quality in Albania.
The attainment of all the AFSA’s goals regarding regulation and supervision will be based
on close cooperation with all insurance, securities and supplementary private pensions
market structures. The target is to conduct programs, which promote effi ciency and su-
pervised markets integrity, in cooperation with businesses. Fruitful cooperation and regu-
lar communication established with insurers organization will be further enhanced upon
initiation and implementation of programs regarding expansion of businesses, insurance
of nature disasters, etc.
In conclusion, a solid macroeconomic development of the country and a fast grow-
ing banking sector tied with good potentials that insurance, securities and pensions
markets provide in Albania, are all factors, which enable solid growth of non-banking
fi nancial markets in a relatively short time. These factors, accompanied by the overall
improvement of the fi nancial markets supervision , have served at this time as the basis
of attracting the interest of international insurance companies and pension institutions.
It is worth mentioning that some of the best European insurance companies, have be-
gun their cooperation with Albanian insurance companies. International companies
have indicated considerable interest regarding the privatization of the state-owned Insig
insurance company, which is set to be completed within 2007. Incorporation of inter-
national best practices combined with a modern regulatory and supervisory approach
will certainly play a very big role in non-banking fi nancial market capacity boost and its
overall safety and perfection.
IV. Appendixes
APPENDIX A: Financial Supervisory Authority Organization Structure
Licensing & Monitoring Department
International & Public Relations
Department
Inspection & Disciplinary Department
Human Resources & Other Supporting
Department
Internal Audit
Inspection Department
ActuarialDepartment
DisciplinaryDepartment
Adviser Chairperson
Deputy Chairperson Deputy Chairperson
The Board of AFSA
Licensing Department
Monitoring Department
Legal Sector
International & Public
Relat. Dept.
IT Sector
Finance & Accounting
Sector
Human Resources
Sector
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 53
APPENDIX B: Non-Banking Legal-Regulatory Framework
Lega
l/Re
gula
tory
Re
fere
nce
Law
/Reg
ulat
ion
Des
crip
tion
Des
crip
tion
Law
No.
926
7,
date
29
July
200
4
“On
the
Insu
ranc
e, R
e-in
sura
nce
and
Inte
rmed
iary
Act
ivit
y in
Insu
ranc
e an
d Re
insu
ranc
e”
The
scop
e of
thi
s La
w is
est
ablis
hmen
t of
gen
eral
pri
ncip
les
and
rule
s co
ncer
ning
insu
ranc
e, r
eins
uran
ce,
inte
rmed
iary
act
ivit
y in
insu
ranc
e an
d re
insu
ranc
e an
d su
perv
isio
n by
the
sta
te o
f en
titi
es w
hich
und
erta
ke
to e
xerc
ise
the
acti
viti
es s
et f
orth
in t
his
law
.
Dec
ree
No.
295,
da
te 1
5 Se
ptem
ber1
992
chan
ges
by L
aw N
o. 7
461,
da
te 0
1 D
ecem
ber
992,
an
d by
Law
No.
872
9,
date
18
Janu
ary
2001
On
the
Insu
ranc
e of
Mot
or V
ehic
le O
wne
rs
in c
onne
ctio
n w
ith
Liab
ility
to
thir
d pa
rtie
s
The
Law
def
ines
obl
igat
ions
con
cern
ing
com
puls
ory
insu
ranc
e an
d lia
bilit
y to
thi
rd p
arti
es in
cas
es o
f ac
cide
nts
by s
etti
ng f
orth
pro
cedu
res
in r
elat
ion
to m
etin
g th
ese
oblig
atio
ns a
nd it
als
o se
ts f
orth
es
tabl
ishm
ent
of A
lban
ian
Insu
ranc
e Bu
reau
and
the
pro
cedu
res
of
its
func
tion
ing
and
acti
vity
.
Coun
cil o
f M
inis
ters
D
ecis
ion
(her
eina
fter
re
ferr
ed t
o as
CoM
D)
No.
191,
dat
e 25
Mar
ch 2
005
On
the
adop
tion
of
the
appr
oach
on
the
Way
s of
est
imat
ing
the
requ
ired
leve
l of
solv
ency
con
cern
ing
Life
and
Non
-lif
e In
sura
nce
of in
sura
nce
com
pani
es a
nd
the
elem
ents
tha
t co
mpo
se it
.
The
CoM
D d
efin
es t
he W
ays
of e
stim
atin
g th
e re
quir
ed le
vel o
f so
lven
cy
conc
erni
ng L
ife
and
Non
-lif
e In
sura
nce
of in
sura
nce
com
pani
es a
nd t
he
elem
ents
tha
t co
mpo
se it
.
CoM
D N
o. 1
92,
date
25
Mar
ch 2
005
On
the
Lice
nsin
g Cr
iter
ia a
nd P
roce
dure
s fo
r In
sura
nce
Agen
ts a
nd t
he R
ules
of
Supe
rvis
ing
Thei
r Ac
tivi
ty”.
The
CoM
D d
efin
es t
he p
rofe
ssio
nal a
nd r
elia
bilit
y cr
iter
ia o
f in
sura
nce
agen
ts,
as w
ell a
s, it
set
s fo
rth
proc
edur
es r
egar
ding
lice
nsin
g of
and
ru
les
for
the
supe
rvis
ion
of a
gent
s’ a
ctiv
ity.
CoM
D N
o. 2
68,
date
28
Apri
l 200
5
On
dete
rmin
ing
the
high
end
acc
epta
ble
limit
s of
the
act
ivit
ies
and
inve
stm
ents
of
acti
viti
es t
o re
cove
r te
chni
cal a
nd
mat
hem
atic
al p
rovi
sion
s in
insu
ranc
e co
mpa
nies
.
The
CoM
D d
efin
es t
he h
igh
end
acce
ptab
le li
mit
s of
the
act
ivit
ies
and
inve
stm
ents
of
acti
viti
es t
o re
cove
r te
chni
cal a
nd m
athe
mat
ical
pr
ovis
ions
in in
sura
nce
com
pani
es.
Min
iste
r of
Fin
ance
O
rder
No.
11
date
25
Mar
ch 2
005
On
the
adop
tion
of
mot
or c
ompu
lsor
y in
sura
nce
prem
ium
reg
ardi
ng li
abili
ties
to
thi
rd p
arti
es
This
ord
er d
efin
es e
arne
d pr
emiu
m r
ates
of
com
puls
ory
insu
ranc
e by
m
otor
veh
icle
s ow
ners
in c
onne
ctio
n w
ith
liabi
litie
s to
thi
rd p
arti
es.
Min
iste
r of
Fin
ance
O
rder
No.
14
date
06
May
200
5
On
trad
ing
and
adm
inis
trat
ion
of b
orde
r po
lices
by
Alba
nian
Insu
ranc
e Bu
reau
The
scop
e of
thi
s or
der
is is
suan
ce,
trad
ing
and
adm
inis
trat
ion
of B
orde
r In
sura
nce
Polic
ies.
The
Alb
ania
n In
sura
nce
Bure
au is
ass
igne
d to
car
ry o
ut
thes
e ac
tivi
ties
on
beha
lf o
f in
sura
nce
com
pani
es,
whi
ch a
re m
embe
rs o
f it
.
Regu
lati
on a
dopt
ed b
y De
cisi
on N
o. 4
, dat
e 08
Fe
brua
ry 2
007
of F
inan
cial
Su
perv
isor
y Au
thor
ity
Boar
d
On
the
limit
s of
insu
ranc
e co
mpa
nies
sto
ck in
vest
men
t
Te g
oal o
f th
is r
egul
atio
n is
the
est
ablis
hmen
t of
bal
ance
for
the
in
sura
nce
com
pani
es’
stoc
k in
vest
men
t an
d co
mpu
lsor
y ad
here
nce
to s
ome
supe
rvis
ory
rela
tion
s.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
5,
date
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
rein
sura
nce
prog
ram
con
tent
of
insu
ranc
e co
mpa
nies
and
tim
elin
es o
f pr
esen
ting
it t
o th
e Fi
nanc
ial S
uper
viso
ry
Auth
orit
y
The
scop
e of
thi
s re
gula
tion
is t
o de
term
ine
basi
c ru
les
of d
raft
ing
the
rein
sura
nce
need
s pr
ogra
m f
or e
very
fin
anci
al y
ear
of t
he
insu
ranc
e co
mpa
ny.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
6,
date
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
insu
ranc
e co
mpa
nies
rep
orti
ng
rule
s, m
anne
rs a
nd c
ondi
tion
s to
AFS
A Th
e sc
ope
of t
his
regu
lati
on c
onsi
sts
of t
he r
ules
set
by
AFSA
co
ncer
ning
the
insu
ranc
e co
mpa
nies
rep
orti
ng m
anne
r.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
7,
date
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
insu
ranc
e co
mpa
nies
au
thor
ized
acc
ount
ing
expe
rts
The
scop
e of
thi
s re
gula
tion
is d
efin
itio
n of
cri
teri
a an
d pr
oced
ures
for
au
thor
ized
acc
ount
ing
expe
rts
com
pani
es,
whi
ch w
ill b
e ap
poin
ted
by
insu
ranc
e co
mpa
nies
fol
low
ing
the
appr
oval
of
the
AFSA
and
the
con
tent
of
the
con
trol
rep
orts
on
insu
ranc
e co
mpa
nies
by
the
auth
oriz
ed
acco
unti
ng e
xper
ts c
ompa
nies
.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
8,
date
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
basi
s, c
alcu
lati
on m
etho
ds
and
the
man
ners
of
keep
ing
mat
hem
atic
al p
rovi
sion
s.
The
scop
e of
thi
s re
gula
tion
is c
alcu
lati
on m
etho
ds a
nd t
he m
anne
rs
of k
eepi
ng m
athe
mat
ical
pro
visi
ons
by t
he in
sura
nce
com
pani
es.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
9,
date
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
basi
s, c
alcu
lati
on m
etho
ds
and
the
man
ners
of
keep
ing
non-
life
insu
ranc
e te
chni
cal p
rovi
sion
s.
The
scop
e of
thi
s re
gula
tion
is t
he m
anne
r of
cal
cula
tion
and
kee
ping
of
non
-lif
e in
sura
nce
tech
nica
l pro
visi
ons
by in
sura
nce
com
pani
es.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
13,
dat
e 08
Fe
brua
ry 2
007
of F
inan
cial
Su
perv
isor
y Au
thor
ity
Boar
d
On
the
acce
ptin
g an
d re
view
ing
proc
edur
es
of a
pplic
atio
ns a
bout
issu
ing
the
licen
se
to e
xerc
ise
insu
ranc
e or
rei
nsur
ance
ac
tivi
ty in
the
Rep
ublic
of
Alba
nia
The
goal
of
this
reg
ulat
ion
is d
efin
itio
n of
the
tim
e lim
its
and
the
proc
edur
es o
f is
suin
g th
e lic
ense
to
exer
cise
act
ivit
y as
insu
ranc
e an
d re
insu
ranc
e co
mpa
ny a
nd a
s an
off
ice
of a
for
eign
com
pany
, pr
oced
ures
of
est
ablis
hing
the
rep
rese
ntat
ion
offi
ce in
the
Rep
ublic
of
Alba
nia
by
the
fore
ign
insu
ranc
e co
mpa
ny,
as w
ell a
s, t
he p
roce
dure
s of
lice
nsin
g an
d ex
pans
ion
of t
he in
sura
nce
com
pany
insu
ranc
e ac
tivi
ty.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
14,
dat
e 08
Fe
brua
ry 2
007
of F
inan
cial
Su
perv
isor
y Au
thor
ity
Boar
d
On
som
e cr
iter
ia t
o be
met
by
pers
ons
elec
ted
or a
ppoi
nted
in t
he in
sura
nce
and
rein
sura
nce
com
pani
es le
adin
g bo
dies
.
The
goal
of
this
reg
ulat
ion
is t
o de
fine
req
uire
men
ts in
con
nect
ion
wit
h pr
ofes
sion
alis
m a
nd t
he r
eput
atio
n of
per
sons
, w
ho c
ondu
ct
adm
inis
trat
ion,
lead
ing
and
cont
rolli
ng o
f th
e in
sura
nce
com
pany
, as
wel
l as,
con
stra
ints
to
be a
pplie
d in
the
fra
me
of t
heir
app
oint
men
t an
d di
smis
sal.
Inst
ruct
ion
adop
ted
by
Dec
isio
n N
o. 1
0, d
ate
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
list
of d
ocum
ents
of
regu
lar
and
annu
al m
anda
tory
rep
orti
ng o
f in
sura
nce
and
rein
sura
nce
com
pani
es.
The
scop
e of
thi
s re
gula
tion
is li
stin
g of
all
man
dato
ry d
ocum
enta
tion
fo
r re
gula
r an
d an
nual
rep
orti
ng o
f in
sura
nce
com
pani
es t
o th
e AF
SA.
Inst
ruct
ion
adop
ted
by
Dec
isio
n N
o. 1
1, d
ate
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
rule
s of
dis
clos
ing
the
insu
ranc
e an
d br
oker
age
com
pani
es d
ata
in t
he
cont
ext
of t
rans
pare
ncy
to t
he p
ublic
an
d co
nsum
er p
rote
ctio
n.
The
goal
of
this
inst
ruct
ion
is d
efin
itio
n of
the
rul
es o
f di
sclo
sure
for
th
e ne
cess
ary
data
to
enab
le t
he p
ublic
to
beco
me
fam
iliar
wit
h th
e fi
nanc
ial c
ondi
tion
of
insu
ranc
e co
mpa
nies
and
to
asse
ss t
he in
sura
nce
com
pani
es a
ffor
dabi
lity
in t
erm
s of
pay
ing
the
clai
ms
and
mee
ting
oth
erob
ligat
ions
, as
wel
l as,
def
inin
g th
e ru
les
for
prov
idin
g in
form
atio
n to
th
e co
nsum
ers
ahea
d of
ent
erin
g in
to t
he in
sura
nce
cont
ract
, or
ove
r th
e in
sura
nce
cont
ract
val
idit
y ti
me.
Inst
ruct
ion
adop
ted
by D
ecis
ion
No.
12,
da
te 0
8 Fe
brua
ry 2
007
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
defi
ning
the
cri
teri
a of
rei
nsur
ance
co
mpa
nies
, w
ith
whi
ch t
he in
sura
nce
com
pani
es t
hat
oper
ate
in t
he R
epub
lic
of A
lban
ia m
ay e
nter
into
rei
nsur
ance
ag
reem
ents
.
The
scop
e of
thi
s in
stru
ctio
n co
nsis
t of
the
reg
ulat
ion
of in
sura
nce
com
pani
es r
eins
uran
ce a
ctiv
ity,
whi
ch c
an r
eins
ure
part
of
liabi
litie
s th
at it
has
con
trac
ted
wit
h in
sure
rs,
wit
h na
tion
al r
eins
uran
ce
com
pani
es,
wit
h of
fice
s of
for
eign
rei
nsur
ance
com
pani
es li
cens
ed b
y th
e AF
SA o
r fo
reig
n re
insu
ranc
e co
mpa
nies
tha
t m
eet
the
crit
eria
set
fo
rth
in t
his
inst
ruct
ion.
In In
sura
nce
Area
A N N U A L R E P O R T ‘ 0 654
Lega
l/Re
gula
tory
Re
fere
nce
Law
/Reg
ulat
ion
Des
crip
tion
Des
crip
tion
Law
No.
926
7,
date
29
July
200
4
“On
the
Insu
ranc
e, R
e-in
sura
nce
and
Inte
rmed
iary
Act
ivit
y in
Insu
ranc
e an
d Re
insu
ranc
e”
The
scop
e of
thi
s La
w is
est
ablis
hmen
t of
gen
eral
pri
ncip
les
and
rule
s co
ncer
ning
insu
ranc
e, r
eins
uran
ce,
inte
rmed
iary
act
ivit
y in
insu
ranc
e an
d re
insu
ranc
e an
d su
perv
isio
n by
the
sta
te o
f en
titi
es w
hich
und
erta
ke
to e
xerc
ise
the
acti
viti
es s
et f
orth
in t
his
law
.
Dec
ree
No.
295,
da
te 1
5 Se
ptem
ber1
992
chan
ges
by L
aw N
o. 7
461,
da
te 0
1 D
ecem
ber
992,
an
d by
Law
No.
872
9,
date
18
Janu
ary
2001
On
the
Insu
ranc
e of
Mot
or V
ehic
le O
wne
rs
in c
onne
ctio
n w
ith
Liab
ility
to
thir
d pa
rtie
s
The
Law
def
ines
obl
igat
ions
con
cern
ing
com
puls
ory
insu
ranc
e an
d lia
bilit
y to
thi
rd p
arti
es in
cas
es o
f ac
cide
nts
by s
etti
ng f
orth
pro
cedu
res
in r
elat
ion
to m
etin
g th
ese
oblig
atio
ns a
nd it
als
o se
ts f
orth
es
tabl
ishm
ent
of A
lban
ian
Insu
ranc
e Bu
reau
and
the
pro
cedu
res
of
its
func
tion
ing
and
acti
vity
.
Coun
cil o
f M
inis
ters
D
ecis
ion
(her
eina
fter
re
ferr
ed t
o as
CoM
D)
No.
191,
dat
e 25
Mar
ch 2
005
On
the
adop
tion
of
the
appr
oach
on
the
Way
s of
est
imat
ing
the
requ
ired
leve
l of
solv
ency
con
cern
ing
Life
and
Non
-lif
e In
sura
nce
of in
sura
nce
com
pani
es a
nd
the
elem
ents
tha
t co
mpo
se it
.
The
CoM
D d
efin
es t
he W
ays
of e
stim
atin
g th
e re
quir
ed le
vel o
f so
lven
cy
conc
erni
ng L
ife
and
Non
-lif
e In
sura
nce
of in
sura
nce
com
pani
es a
nd t
he
elem
ents
tha
t co
mpo
se it
.
CoM
D N
o. 1
92,
date
25
Mar
ch 2
005
On
the
Lice
nsin
g Cr
iter
ia a
nd P
roce
dure
s fo
r In
sura
nce
Agen
ts a
nd t
he R
ules
of
Supe
rvis
ing
Thei
r Ac
tivi
ty”.
The
CoM
D d
efin
es t
he p
rofe
ssio
nal a
nd r
elia
bilit
y cr
iter
ia o
f in
sura
nce
agen
ts,
as w
ell a
s, it
set
s fo
rth
proc
edur
es r
egar
ding
lice
nsin
g of
and
ru
les
for
the
supe
rvis
ion
of a
gent
s’ a
ctiv
ity.
CoM
D N
o. 2
68,
date
28
Apri
l 200
5
On
dete
rmin
ing
the
high
end
acc
epta
ble
limit
s of
the
act
ivit
ies
and
inve
stm
ents
of
acti
viti
es t
o re
cove
r te
chni
cal a
nd
mat
hem
atic
al p
rovi
sion
s in
insu
ranc
e co
mpa
nies
.
The
CoM
D d
efin
es t
he h
igh
end
acce
ptab
le li
mit
s of
the
act
ivit
ies
and
inve
stm
ents
of
acti
viti
es t
o re
cove
r te
chni
cal a
nd m
athe
mat
ical
pr
ovis
ions
in in
sura
nce
com
pani
es.
Min
iste
r of
Fin
ance
O
rder
No.
11
date
25
Mar
ch 2
005
On
the
adop
tion
of
mot
or c
ompu
lsor
y in
sura
nce
prem
ium
reg
ardi
ng li
abili
ties
to
thi
rd p
arti
es
This
ord
er d
efin
es e
arne
d pr
emiu
m r
ates
of
com
puls
ory
insu
ranc
e by
m
otor
veh
icle
s ow
ners
in c
onne
ctio
n w
ith
liabi
litie
s to
thi
rd p
arti
es.
Min
iste
r of
Fin
ance
O
rder
No.
14
date
06
May
200
5
On
trad
ing
and
adm
inis
trat
ion
of b
orde
r po
lices
by
Alba
nian
Insu
ranc
e Bu
reau
The
scop
e of
thi
s or
der
is is
suan
ce,
trad
ing
and
adm
inis
trat
ion
of B
orde
r In
sura
nce
Polic
ies.
The
Alb
ania
n In
sura
nce
Bure
au is
ass
igne
d to
car
ry o
ut
thes
e ac
tivi
ties
on
beha
lf o
f in
sura
nce
com
pani
es,
whi
ch a
re m
embe
rs o
f it
.
Regu
lati
on a
dopt
ed b
y De
cisi
on N
o. 4
, dat
e 08
Fe
brua
ry 2
007
of F
inan
cial
Su
perv
isor
y Au
thor
ity
Boar
d
On
the
limit
s of
insu
ranc
e co
mpa
nies
sto
ck in
vest
men
t
Te g
oal o
f th
is r
egul
atio
n is
the
est
ablis
hmen
t of
bal
ance
for
the
in
sura
nce
com
pani
es’
stoc
k in
vest
men
t an
d co
mpu
lsor
y ad
here
nce
to s
ome
supe
rvis
ory
rela
tion
s.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
5,
date
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
rein
sura
nce
prog
ram
con
tent
of
insu
ranc
e co
mpa
nies
and
tim
elin
es o
f pr
esen
ting
it t
o th
e Fi
nanc
ial S
uper
viso
ry
Auth
orit
y
The
scop
e of
thi
s re
gula
tion
is t
o de
term
ine
basi
c ru
les
of d
raft
ing
the
rein
sura
nce
need
s pr
ogra
m f
or e
very
fin
anci
al y
ear
of t
he
insu
ranc
e co
mpa
ny.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
6,
date
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
insu
ranc
e co
mpa
nies
rep
orti
ng
rule
s, m
anne
rs a
nd c
ondi
tion
s to
AFS
A Th
e sc
ope
of t
his
regu
lati
on c
onsi
sts
of t
he r
ules
set
by
AFSA
co
ncer
ning
the
insu
ranc
e co
mpa
nies
rep
orti
ng m
anne
r.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
7,
date
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
insu
ranc
e co
mpa
nies
au
thor
ized
acc
ount
ing
expe
rts
The
scop
e of
thi
s re
gula
tion
is d
efin
itio
n of
cri
teri
a an
d pr
oced
ures
for
au
thor
ized
acc
ount
ing
expe
rts
com
pani
es,
whi
ch w
ill b
e ap
poin
ted
by
insu
ranc
e co
mpa
nies
fol
low
ing
the
appr
oval
of
the
AFSA
and
the
con
tent
of
the
con
trol
rep
orts
on
insu
ranc
e co
mpa
nies
by
the
auth
oriz
ed
acco
unti
ng e
xper
ts c
ompa
nies
.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
8,
date
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
basi
s, c
alcu
lati
on m
etho
ds
and
the
man
ners
of
keep
ing
mat
hem
atic
al p
rovi
sion
s.
The
scop
e of
thi
s re
gula
tion
is c
alcu
lati
on m
etho
ds a
nd t
he m
anne
rs
of k
eepi
ng m
athe
mat
ical
pro
visi
ons
by t
he in
sura
nce
com
pani
es.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
9,
date
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
basi
s, c
alcu
lati
on m
etho
ds
and
the
man
ners
of
keep
ing
non-
life
insu
ranc
e te
chni
cal p
rovi
sion
s.
The
scop
e of
thi
s re
gula
tion
is t
he m
anne
r of
cal
cula
tion
and
kee
ping
of
non
-lif
e in
sura
nce
tech
nica
l pro
visi
ons
by in
sura
nce
com
pani
es.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
13,
dat
e 08
Fe
brua
ry 2
007
of F
inan
cial
Su
perv
isor
y Au
thor
ity
Boar
d
On
the
acce
ptin
g an
d re
view
ing
proc
edur
es
of a
pplic
atio
ns a
bout
issu
ing
the
licen
se
to e
xerc
ise
insu
ranc
e or
rei
nsur
ance
ac
tivi
ty in
the
Rep
ublic
of
Alba
nia
The
goal
of
this
reg
ulat
ion
is d
efin
itio
n of
the
tim
e lim
its
and
the
proc
edur
es o
f is
suin
g th
e lic
ense
to
exer
cise
act
ivit
y as
insu
ranc
e an
d re
insu
ranc
e co
mpa
ny a
nd a
s an
off
ice
of a
for
eign
com
pany
, pr
oced
ures
of
est
ablis
hing
the
rep
rese
ntat
ion
offi
ce in
the
Rep
ublic
of
Alba
nia
by
the
fore
ign
insu
ranc
e co
mpa
ny,
as w
ell a
s, t
he p
roce
dure
s of
lice
nsin
g an
d ex
pans
ion
of t
he in
sura
nce
com
pany
insu
ranc
e ac
tivi
ty.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
14,
dat
e 08
Fe
brua
ry 2
007
of F
inan
cial
Su
perv
isor
y Au
thor
ity
Boar
d
On
som
e cr
iter
ia t
o be
met
by
pers
ons
elec
ted
or a
ppoi
nted
in t
he in
sura
nce
and
rein
sura
nce
com
pani
es le
adin
g bo
dies
.
The
goal
of
this
reg
ulat
ion
is t
o de
fine
req
uire
men
ts in
con
nect
ion
wit
h pr
ofes
sion
alis
m a
nd t
he r
eput
atio
n of
per
sons
, w
ho c
ondu
ct
adm
inis
trat
ion,
lead
ing
and
cont
rolli
ng o
f th
e in
sura
nce
com
pany
, as
wel
l as,
con
stra
ints
to
be a
pplie
d in
the
fra
me
of t
heir
app
oint
men
t an
d di
smis
sal.
Inst
ruct
ion
adop
ted
by
Dec
isio
n N
o. 1
0, d
ate
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
list
of d
ocum
ents
of
regu
lar
and
annu
al m
anda
tory
rep
orti
ng o
f in
sura
nce
and
rein
sura
nce
com
pani
es.
The
scop
e of
thi
s re
gula
tion
is li
stin
g of
all
man
dato
ry d
ocum
enta
tion
fo
r re
gula
r an
d an
nual
rep
orti
ng o
f in
sura
nce
com
pani
es t
o th
e AF
SA.
Inst
ruct
ion
adop
ted
by
Dec
isio
n N
o. 1
1, d
ate
08
Febr
uary
200
7 of
Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
rule
s of
dis
clos
ing
the
insu
ranc
e an
d br
oker
age
com
pani
es d
ata
in t
he
cont
ext
of t
rans
pare
ncy
to t
he p
ublic
an
d co
nsum
er p
rote
ctio
n.
The
goal
of
this
inst
ruct
ion
is d
efin
itio
n of
the
rul
es o
f di
sclo
sure
for
th
e ne
cess
ary
data
to
enab
le t
he p
ublic
to
beco
me
fam
iliar
wit
h th
e fi
nanc
ial c
ondi
tion
of
insu
ranc
e co
mpa
nies
and
to
asse
ss t
he in
sura
nce
com
pani
es a
ffor
dabi
lity
in t
erm
s of
pay
ing
the
clai
ms
and
mee
ting
oth
erob
ligat
ions
, as
wel
l as,
def
inin
g th
e ru
les
for
prov
idin
g in
form
atio
n to
th
e co
nsum
ers
ahea
d of
ent
erin
g in
to t
he in
sura
nce
cont
ract
, or
ove
r th
e in
sura
nce
cont
ract
val
idit
y ti
me.
Inst
ruct
ion
adop
ted
by D
ecis
ion
No.
12,
da
te 0
8 Fe
brua
ry 2
007
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
defi
ning
the
cri
teri
a of
rei
nsur
ance
co
mpa
nies
, w
ith
whi
ch t
he in
sura
nce
com
pani
es t
hat
oper
ate
in t
he R
epub
lic
of A
lban
ia m
ay e
nter
into
rei
nsur
ance
ag
reem
ents
.
The
scop
e of
thi
s in
stru
ctio
n co
nsis
t of
the
reg
ulat
ion
of in
sura
nce
com
pani
es r
eins
uran
ce a
ctiv
ity,
whi
ch c
an r
eins
ure
part
of
liabi
litie
s th
at it
has
con
trac
ted
wit
h in
sure
rs,
wit
h na
tion
al r
eins
uran
ce
com
pani
es,
wit
h of
fice
s of
for
eign
rei
nsur
ance
com
pani
es li
cens
ed b
y th
e AF
SA o
r fo
reig
n re
insu
ranc
e co
mpa
nies
tha
t m
eet
the
crit
eria
set
fo
rth
in t
his
inst
ruct
ion.
In In
sura
nce
Area
55A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y
A N N U A L R E P O R T ‘ 0 656
Lega
l/Re
gula
tory
Re
fere
nce
Des
crip
tion
Law
/Reg
ulat
ion
Des
crip
tion
Law
808
0 da
te
01.0
3.19
96,
chan
ged
by L
aws
No.
816
8,
date
05
Dec
embe
r 19
96 a
nd L
aw N
o. 8
745,
da
te 2
2 Fe
brua
ry 2
001.
On
Secu
riti
es
The
Law
“O
n Se
curi
ties
” is
the
mai
n re
gula
tory
fra
mew
ork
for
func
tion
ing
of r
egul
ator
y.
The
obje
ct o
f th
is la
w is
pro
visi
on o
f in
vest
ors’
pro
tect
ion
in s
ecur
itie
s by
est
ablis
hing
the
re
gula
tory
bod
y, b
y re
gula
ting
sec
urit
ies
mar
kets
and
per
sons
eng
aged
in s
ecur
itie
s in
vest
men
t bu
sine
ss,
and
by c
ontr
ollin
g th
e pu
blic
issu
e of
and
tra
ding
in s
ecur
itie
s. T
his
law
est
ablis
hes
the
regu
lato
ry e
ntit
y w
hich
has
sup
ervi
sory
and
lice
nsin
g au
thor
ity
for
the
secu
riti
es m
arke
t,
and
wit
h fu
rthe
r de
velo
pmen
t of
thi
s m
arke
t, t
he r
egul
ator
will
tak
e th
e at
trib
utes
of
an
inde
pend
ent
agen
cy.
CoM
D N
o. 4
40
date
17
June
200
1
On
the
rule
s re
: fo
rm a
nd c
onte
nt
of a
nnou
ncem
ents
ab
out
inve
stm
ent
acti
vity
in s
ecur
itie
s.
This
dec
isio
n de
fine
s th
e ru
les
in c
onne
ctio
n w
ith
enti
ties
, w
hich
enj
oy t
he r
ight
to
mak
e an
noun
cem
ents
abo
ut s
ecur
itie
s an
d ex
empt
ions
fro
m t
his
rule
, ru
les
in r
elat
ion
to o
rder
s th
at m
ust
be is
sued
by
the
regu
lato
ry b
ody
in c
ases
whe
n it
fin
ds o
ut t
hat
a se
curi
ty r
elat
ed
anno
unce
men
t is
fra
udul
ent,
the
obl
igat
ion
to s
end
a co
py o
f an
noun
cem
ents
to
the
regu
lato
r’s
addr
ess,
and
the
san
ctio
ns o
n ca
ses,
whi
ch a
re v
erif
ies
as r
unni
ng a
gain
st
this
dec
isio
n.
CoM
D N
o. 4
41
date
17
June
200
1
On
the
rule
s of
lead
ing
secu
riti
es
inve
stm
ent
acti
vity
The
goal
of
this
dec
isio
n is
to
stip
ulat
e an
eth
ic,
a be
havi
or o
f pe
rson
s lic
ense
d to
ope
rate
in
sec
urit
ies
mar
ket.
It d
efin
es t
he o
blig
atio
ns v
is-à
-vis
cus
tom
ers,
the
obl
igat
ion
conc
erni
ng
a cl
ear
and
fair
com
mun
icat
ion,
the
obl
igat
ion
to e
xpla
in t
he r
isk
to t
he c
usto
mer
, th
e ob
ligat
ion
to f
amili
ariz
e th
e cu
stom
er w
ith
the
fees
tha
t ar
e ap
plie
d, e
tc.
The
deci
sion
als
o se
ts f
orth
rul
es a
bout
exe
cuti
on u
pon
prio
rity
pri
ncip
le o
f cu
stom
er’s
ord
ers,
qui
ck a
nd f
air
regi
stra
tion
of
eh t
rans
acti
on c
arri
ed o
ut b
y th
e cu
stom
er,
etc.
CoM
D N
o. 4
42
date
17
June
200
1
On
the
fina
ncia
l an
d ac
coun
ting
re
quir
emen
ts o
f se
curi
ties
dea
lers
The
deci
sion
def
ines
the
obl
igat
ions
in t
erm
s of
kee
ping
the
acc
ount
ing
reco
rds,
the
ir
reno
vati
on a
nd m
aint
enan
ce,
the
oblig
atio
n to
dra
ft f
inan
cial
sta
tem
ents
and
the
ir f
orm
an
d co
nten
t. It
pro
vide
s th
e de
fini
tion
“cu
stom
er m
oney
” an
d th
e op
erat
ions
link
ed w
ith
them
. In
add
itio
n, t
he d
ecis
ion
sets
for
th t
he o
blig
atio
n of
lice
nsed
per
son
to a
ssig
n ac
coun
ting
ex
pert
s, t
hus
rein
forc
ing
auth
orit
ies
and
proc
edur
es r
egar
ding
the
ir a
ppoi
ntm
ent
and
dism
issa
l.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
12,
dat
e 29
Ja
nuar
y 20
07 o
f Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
licen
sing
, fe
es
and
com
mis
sion
s Th
e go
al o
f th
is r
egul
atio
n is
to
defi
ne t
he li
cens
ing
proc
edur
es a
nd t
he f
ees
that
ent
itie
s m
ust
pay
case
by
case
dep
endi
ng o
n th
e ac
tivi
ty,
for
whi
ch t
hey
appl
y.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
12,
dat
e 29
Ja
nuar
y 20
07 o
f Fin
anci
al
Supe
rvis
ory
Auth
ority
Boa
rd
On
the
requ
irem
ents
re
: fi
nanc
ial r
esou
rces
of
lice
nsed
per
sons
This
reg
ulat
ion
sets
for
th r
ules
con
cern
ing
min
imum
cap
ital
, lo
w e
nd li
quid
ity
limit
, ob
ligat
ions
of
licen
sed
pers
ons,
def
init
ions
wit
h re
gard
to
appr
oved
inpu
ts a
nd li
quid
inpu
ts
and
thei
r es
tim
ate.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
pros
pect
This
reg
ulat
ion
defi
nes
rule
s ap
plic
able
to
secu
riti
es p
ublic
pro
posa
ls,
whi
ch a
re s
hare
s, b
onds
or
gua
rant
ees,
by
prov
idin
g th
e ex
cept
ions
to
the
gene
ral r
ule.
The
reg
ulat
ion
prov
ides
the
pr
ospe
ct m
anda
tory
for
m a
nd c
onte
nt.
It d
efin
es t
he d
ata
that
mus
t m
ake
up t
he n
arra
tive
par
t of
the
pro
spec
t su
ch a
s re
spon
sibl
e pe
rson
s, a
dvis
ors,
sec
urit
ies
data
, w
ith
whi
ch t
he p
ropo
sal
is li
nked
, ge
nera
l inf
orm
atio
n on
the
issu
es a
nd it
s ca
pita
l, e
tc.
Addi
tion
ally
, th
e re
gula
tion
re
gula
tes
in a
det
aile
d m
anne
r th
e pr
oced
ures
on
the
pros
pect
reg
istr
atio
n; it
set
s fo
rth
the
max
imum
tim
e lim
it o
f a
publ
ic p
ropo
sal,
the
obl
igat
ion
of t
he is
suer
to
repo
rt t
o th
e AF
SA
follo
win
g pr
opos
al c
losu
re a
nd t
he m
easu
res
to e
limin
ate
irre
gula
riti
es d
urin
g th
e pu
blic
pr
opos
al.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
take
-ove
r
The
regu
lati
on e
stab
lishe
s th
e le
gal b
asis
and
it a
pplie
s to
all
prop
osal
s to
tak
e po
sses
sion
of
the
shar
es c
ontr
ol p
acka
ge o
r to
mer
ge j
oint
sto
ck c
ompa
nies
reg
iste
red
in A
lban
ia.
Its
goal
is
to e
nsur
e an
equ
al a
nd f
air
trea
tmen
t of
all
shar
ehol
ders
, w
hich
are
aff
ecte
d tr
ansa
ctio
ns
carr
ied
out
to g
et p
osse
ssio
n of
sha
res
cont
rol p
acka
ge.
This
reg
ulat
ion
impo
ses
the
rule
s of
th
e ga
me.
Pro
posa
ls t
o ge
t po
sses
sion
of
the
cont
rol p
acka
ge m
ust
be m
ade
by t
he d
efin
ed
dead
line
in o
rder
to
prov
ide
shar
ehol
ders
wit
h th
e po
ssib
ility
of
mak
ing
a w
ell-
info
rmed
de
cisi
on.
The
publ
ic e
njoy
s th
e ri
ght
to b
e in
form
ed a
bout
any
sig
nifi
cant
cha
nge
(mor
e or
le
ss t
han
20%
of t
he r
ight
to
vote
).
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
secu
riti
es
regi
stra
rs li
cens
ing
The
scop
e of
thi
s re
gula
tion
is t
he d
efin
itio
n of
req
uire
men
ts,
proc
edur
es a
nd t
ime
limit
s of
lice
nsin
g of
per
sons
who
app
ly t
o be
issu
ed w
ith
licen
se t
o op
erat
e as
sec
urit
ies
regi
stra
r.
Secu
riti
es r
egis
trar
is a
jur
isti
c pe
rson
lice
nsed
by
AFSA
, w
hich
has
org
aniz
atio
n an
d ad
min
istr
atio
n of
sec
urit
ies
regi
ster
s as
the
sco
pe o
f it
s ac
tivi
ty.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
12,
dat
e 29
Ja
nuar
y 20
07 o
f Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
orga
niza
tion
of
appl
ican
ts e
xam
inat
ion
The
regu
lati
on d
efin
es t
he e
xam
inat
ion
orga
niza
tion
pro
cedu
re f
or t
he s
ecur
itie
s de
aler
, in
vest
men
ts a
dvis
or a
nd t
heir
rep
rese
ntat
ive.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
secu
riti
es
mar
ket
licen
sing
Def
init
ion
of r
equi
rem
ents
, ti
me
limit
s an
d lic
ensi
ng p
roce
dure
s to
be
follo
wed
by
the
enti
ties
app
lyin
g to
be
prov
ided
lice
nse
to o
pera
te in
sec
urit
ies
mar
ket
mak
e up
the
sco
pe
of t
his
regu
lati
on.
In t
his
fram
e, it
is d
efin
ed t
hat
no e
ntit
y m
ay o
pera
te a
s se
curi
ties
dea
ler
unle
ss it
is li
cens
ed in
adv
ance
by
AFSA
. Th
e se
curi
ties
mar
ket
(sto
ck e
xcha
nge)
org
aniz
es it
s ac
tivi
ty b
ased
on
the
stat
ute
and
rule
s of
tra
de o
pera
tion
, w
hich
bec
ome
subj
ect
to a
dopt
ion
by t
he A
FSA.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
licen
sing
se
curi
ties
dea
ler,
th
e in
vest
men
ts
advi
sor
and
thei
r re
pres
enta
tive
.
This
reg
ulat
ion
expl
icit
ly s
tipu
late
s th
e ac
tive
s fo
r w
hich
the
sec
urit
ies
deal
er,
inve
stm
ents
ad
viso
r an
d th
eir
repr
esen
tati
ve a
re li
cens
ed.
Lice
nsin
g cr
iter
ia t
ake
up a
con
side
rabl
e an
d sp
ecia
l par
t of
the
reg
ulat
ion.
The
se c
rite
ria
defi
ne a
ll ne
cess
ary
docu
men
tati
on t
hat
appl
ican
ts m
ust
pres
ent
in o
rder
to
be li
cens
ed t
o co
nduc
t th
e ac
tivi
ties
, w
hich
fal
l und
er
the
scop
e of
thi
s re
gula
tion
. Th
e AF
SA r
ight
to
acce
pt o
r re
fuse
the
app
licat
ions
is a
pplie
d in
th
e fr
ame
of p
roce
dure
s, w
hich
are
fol
low
ed in
suc
h a
proc
ess.
In a
ddit
ion,
it s
ets
fort
h fe
es
and
com
mis
sion
s to
be
paid
by
the
licen
sed
enti
ties
bot
h, a
t th
e m
omen
t w
hen
issu
ed w
ith
the
licen
se a
nd d
urin
g ex
erci
sing
the
act
ivit
y, f
or w
hich
the
y ha
ve r
ecei
ved
the
licen
se.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
illeg
al p
ract
ices
of
tra
ding
The
regu
lati
on r
efle
cts
mos
t re
cent
gui
danc
e of
CE
re:
trad
e vi
olat
ions
and
pro
tect
ion
agai
nst
them
. Th
e re
gula
tion
pro
vide
s th
e de
fini
tion
of
inte
rnal
info
rmat
ion
by m
eans
of
clea
rly
desc
ribi
ng it
s tw
o ke
y el
emen
ts,
whi
ch a
re t
he a
ccur
ate
natu
re a
nd in
flue
nce
on t
he p
rice
. Th
is d
efin
itio
n co
nsid
ers
it a
mar
ket
viol
atio
n ev
en if
the
per
son,
who
has
per
form
ed t
he a
ctio
n,
did
not
mak
e an
y pr
ofit
. It
is t
he f
irst
tim
e th
at o
blig
atio
ns s
uch
as d
raft
ing
of t
he li
st o
f pe
rson
s w
ith
acce
ss t
o in
tern
al in
form
atio
n, it
s up
dati
ng a
nd t
rans
pare
ncy
to A
FSA
rega
rdin
g tr
ansa
ctio
ns c
arri
ed o
ut b
y co
mpa
ny d
irec
tors
and
per
sons
link
ed w
ith
them
. In
add
itio
n, t
he
regu
lati
on s
ets
fort
h pr
even
tive
mea
sure
s, w
hich
are
con
nect
ed w
ith
the
oblig
atio
ns o
f pe
rson
s pr
ofes
sion
ally
invo
lved
in t
he t
rans
acti
on t
o co
ndem
n an
ille
gal p
ract
ice,
as
wel
l as,
the
ob
ligat
ion
of j
ourn
alis
ts a
nd f
inan
cial
ana
lyst
s to
mak
e tr
ansp
aren
t co
nflic
ts o
f in
tere
st in
the
ir
secu
riti
es r
elat
ed a
rtic
les
and
anal
ysis
.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
5, d
ate
07 D
ecem
ber
2006
of
Fina
ncia
l Sup
ervi
sory
Au
thor
ity
Boar
d
On
the
reta
il m
arke
t on
Gov
ernm
ent
secu
riti
es o
f th
e Re
publ
ic o
f Al
bani
a
This
reg
ulat
ion
expl
icit
ly d
efin
es t
he m
anne
r of
ret
ail m
arke
t fu
ncti
onin
g, t
he m
onit
orin
g an
d tr
ansp
aren
cy p
roce
dure
s w
ith
the
aim
of
prot
ecti
ng in
vest
ors
that
inve
st in
gov
ernm
ent
secu
riti
es.
The
regu
lati
on p
rovi
des
an a
ccur
ate
defi
niti
on o
f re
tail
mar
ket,
typ
e of
tra
nsac
tion
s on
thi
s m
arke
t, t
radi
ng p
roce
dure
s, k
eepi
ng o
f an
alyt
ical
reg
iste
r, o
blig
atio
n to
info
rm a
nd
repo
rt t
o AF
SA.
The
regu
lati
on p
rohi
bits
tra
ding
act
ivit
y in
the
ret
ail m
arke
t of
ban
ks,
whi
ch
are
not
licen
sed
by t
he A
FSA.
Ban
ks,
whi
ch o
pera
te in
ret
ail m
arke
t, m
ust
also
org
aniz
e ke
epin
g of
the
Gov
ernm
ent
secu
riti
es a
naly
tica
l reg
iste
r by
bei
ng is
sued
wit
h a
licen
se f
or
this
typ
e of
act
ivit
y or
, by
mak
ing
an a
gree
men
t w
ith
anot
her
bank
, w
hich
is li
cens
ed f
or
this
pur
pose
.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
the
proc
edur
es o
f m
onit
orin
g re
tail
mar
ket
on G
over
nmen
t se
curi
ties
of
the
Repu
blic
of
Alba
nia
Stip
ulat
ion
of c
ondi
tion
s, m
anne
r an
d pr
oced
ures
of
mon
itor
ing
the
enti
ties
lice
nsed
by
the
AFSA
to
trad
e an
d ke
ep t
he r
egis
ter
on s
ecur
itie
s of
the
Rep
ublic
of
Alba
nia
Gov
ernm
ent
cons
titu
te t
he s
cope
of
this
reg
ulat
ion.
The
tar
get
of t
his
regu
lati
on is
to
prot
ect
secu
riti
es
inve
stor
s’ in
tere
sts
and
impr
ovem
ent
of t
he f
unct
ioni
ng c
ondi
tion
s of
Gov
ernm
ent
secu
riti
es
reta
il m
arke
t.
In S
ecur
itie
s Ar
ea
57A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y
Lega
l/Re
gula
tory
Re
fere
nce
Des
crip
tion
Law
/Reg
ulat
ion
Des
crip
tion
Law
808
0 da
te
01.0
3.19
96,
chan
ged
by L
aws
No.
816
8,
date
05
Dec
embe
r 19
96 a
nd L
aw N
o. 8
745,
da
te 2
2 Fe
brua
ry 2
001.
On
Secu
riti
es
The
Law
“O
n Se
curi
ties
” is
the
mai
n re
gula
tory
fra
mew
ork
for
func
tion
ing
of r
egul
ator
y.
The
obje
ct o
f th
is la
w is
pro
visi
on o
f in
vest
ors’
pro
tect
ion
in s
ecur
itie
s by
est
ablis
hing
the
re
gula
tory
bod
y, b
y re
gula
ting
sec
urit
ies
mar
kets
and
per
sons
eng
aged
in s
ecur
itie
s in
vest
men
t bu
sine
ss,
and
by c
ontr
ollin
g th
e pu
blic
issu
e of
and
tra
ding
in s
ecur
itie
s. T
his
law
est
ablis
hes
the
regu
lato
ry e
ntit
y w
hich
has
sup
ervi
sory
and
lice
nsin
g au
thor
ity
for
the
secu
riti
es m
arke
t,
and
wit
h fu
rthe
r de
velo
pmen
t of
thi
s m
arke
t, t
he r
egul
ator
will
tak
e th
e at
trib
utes
of
an
inde
pend
ent
agen
cy.
CoM
D N
o. 4
40
date
17
June
200
1
On
the
rule
s re
: fo
rm a
nd c
onte
nt
of a
nnou
ncem
ents
ab
out
inve
stm
ent
acti
vity
in s
ecur
itie
s.
This
dec
isio
n de
fine
s th
e ru
les
in c
onne
ctio
n w
ith
enti
ties
, w
hich
enj
oy t
he r
ight
to
mak
e an
noun
cem
ents
abo
ut s
ecur
itie
s an
d ex
empt
ions
fro
m t
his
rule
, ru
les
in r
elat
ion
to o
rder
s th
at m
ust
be is
sued
by
the
regu
lato
ry b
ody
in c
ases
whe
n it
fin
ds o
ut t
hat
a se
curi
ty r
elat
ed
anno
unce
men
t is
fra
udul
ent,
the
obl
igat
ion
to s
end
a co
py o
f an
noun
cem
ents
to
the
regu
lato
r’s
addr
ess,
and
the
san
ctio
ns o
n ca
ses,
whi
ch a
re v
erif
ies
as r
unni
ng a
gain
st
this
dec
isio
n.
CoM
D N
o. 4
41
date
17
June
200
1
On
the
rule
s of
lead
ing
secu
riti
es
inve
stm
ent
acti
vity
The
goal
of
this
dec
isio
n is
to
stip
ulat
e an
eth
ic,
a be
havi
or o
f pe
rson
s lic
ense
d to
ope
rate
in
sec
urit
ies
mar
ket.
It d
efin
es t
he o
blig
atio
ns v
is-à
-vis
cus
tom
ers,
the
obl
igat
ion
conc
erni
ng
a cl
ear
and
fair
com
mun
icat
ion,
the
obl
igat
ion
to e
xpla
in t
he r
isk
to t
he c
usto
mer
, th
e ob
ligat
ion
to f
amili
ariz
e th
e cu
stom
er w
ith
the
fees
tha
t ar
e ap
plie
d, e
tc.
The
deci
sion
als
o se
ts f
orth
rul
es a
bout
exe
cuti
on u
pon
prio
rity
pri
ncip
le o
f cu
stom
er’s
ord
ers,
qui
ck a
nd f
air
regi
stra
tion
of
eh t
rans
acti
on c
arri
ed o
ut b
y th
e cu
stom
er,
etc.
CoM
D N
o. 4
42
date
17
June
200
1
On
the
fina
ncia
l an
d ac
coun
ting
re
quir
emen
ts o
f se
curi
ties
dea
lers
The
deci
sion
def
ines
the
obl
igat
ions
in t
erm
s of
kee
ping
the
acc
ount
ing
reco
rds,
the
ir
reno
vati
on a
nd m
aint
enan
ce,
the
oblig
atio
n to
dra
ft f
inan
cial
sta
tem
ents
and
the
ir f
orm
an
d co
nten
t. It
pro
vide
s th
e de
fini
tion
“cu
stom
er m
oney
” an
d th
e op
erat
ions
link
ed w
ith
them
. In
add
itio
n, t
he d
ecis
ion
sets
for
th t
he o
blig
atio
n of
lice
nsed
per
son
to a
ssig
n ac
coun
ting
ex
pert
s, t
hus
rein
forc
ing
auth
orit
ies
and
proc
edur
es r
egar
ding
the
ir a
ppoi
ntm
ent
and
dism
issa
l.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
12,
dat
e 29
Ja
nuar
y 20
07 o
f Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
licen
sing
, fe
es
and
com
mis
sion
s Th
e go
al o
f th
is r
egul
atio
n is
to
defi
ne t
he li
cens
ing
proc
edur
es a
nd t
he f
ees
that
ent
itie
s m
ust
pay
case
by
case
dep
endi
ng o
n th
e ac
tivi
ty,
for
whi
ch t
hey
appl
y.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
12,
dat
e 29
Ja
nuar
y 20
07 o
f Fin
anci
al
Supe
rvis
ory
Auth
ority
Boa
rd
On
the
requ
irem
ents
re
: fi
nanc
ial r
esou
rces
of
lice
nsed
per
sons
This
reg
ulat
ion
sets
for
th r
ules
con
cern
ing
min
imum
cap
ital
, lo
w e
nd li
quid
ity
limit
, ob
ligat
ions
of
licen
sed
pers
ons,
def
init
ions
wit
h re
gard
to
appr
oved
inpu
ts a
nd li
quid
inpu
ts
and
thei
r es
tim
ate.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
pros
pect
This
reg
ulat
ion
defi
nes
rule
s ap
plic
able
to
secu
riti
es p
ublic
pro
posa
ls,
whi
ch a
re s
hare
s, b
onds
or
gua
rant
ees,
by
prov
idin
g th
e ex
cept
ions
to
the
gene
ral r
ule.
The
reg
ulat
ion
prov
ides
the
pr
ospe
ct m
anda
tory
for
m a
nd c
onte
nt.
It d
efin
es t
he d
ata
that
mus
t m
ake
up t
he n
arra
tive
par
t of
the
pro
spec
t su
ch a
s re
spon
sibl
e pe
rson
s, a
dvis
ors,
sec
urit
ies
data
, w
ith
whi
ch t
he p
ropo
sal
is li
nked
, ge
nera
l inf
orm
atio
n on
the
issu
es a
nd it
s ca
pita
l, e
tc.
Addi
tion
ally
, th
e re
gula
tion
re
gula
tes
in a
det
aile
d m
anne
r th
e pr
oced
ures
on
the
pros
pect
reg
istr
atio
n; it
set
s fo
rth
the
max
imum
tim
e lim
it o
f a
publ
ic p
ropo
sal,
the
obl
igat
ion
of t
he is
suer
to
repo
rt t
o th
e AF
SA
follo
win
g pr
opos
al c
losu
re a
nd t
he m
easu
res
to e
limin
ate
irre
gula
riti
es d
urin
g th
e pu
blic
pr
opos
al.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
take
-ove
r
The
regu
lati
on e
stab
lishe
s th
e le
gal b
asis
and
it a
pplie
s to
all
prop
osal
s to
tak
e po
sses
sion
of
the
shar
es c
ontr
ol p
acka
ge o
r to
mer
ge j
oint
sto
ck c
ompa
nies
reg
iste
red
in A
lban
ia.
Its
goal
is
to e
nsur
e an
equ
al a
nd f
air
trea
tmen
t of
all
shar
ehol
ders
, w
hich
are
aff
ecte
d tr
ansa
ctio
ns
carr
ied
out
to g
et p
osse
ssio
n of
sha
res
cont
rol p
acka
ge.
This
reg
ulat
ion
impo
ses
the
rule
s of
th
e ga
me.
Pro
posa
ls t
o ge
t po
sses
sion
of
the
cont
rol p
acka
ge m
ust
be m
ade
by t
he d
efin
ed
dead
line
in o
rder
to
prov
ide
shar
ehol
ders
wit
h th
e po
ssib
ility
of
mak
ing
a w
ell-
info
rmed
de
cisi
on.
The
publ
ic e
njoy
s th
e ri
ght
to b
e in
form
ed a
bout
any
sig
nifi
cant
cha
nge
(mor
e or
le
ss t
han
20%
of t
he r
ight
to
vote
).
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
secu
riti
es
regi
stra
rs li
cens
ing
The
scop
e of
thi
s re
gula
tion
is t
he d
efin
itio
n of
req
uire
men
ts,
proc
edur
es a
nd t
ime
limit
s of
lice
nsin
g of
per
sons
who
app
ly t
o be
issu
ed w
ith
licen
se t
o op
erat
e as
sec
urit
ies
regi
stra
r.
Secu
riti
es r
egis
trar
is a
jur
isti
c pe
rson
lice
nsed
by
AFSA
, w
hich
has
org
aniz
atio
n an
d ad
min
istr
atio
n of
sec
urit
ies
regi
ster
s as
the
sco
pe o
f it
s ac
tivi
ty.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
12,
dat
e 29
Ja
nuar
y 20
07 o
f Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
orga
niza
tion
of
appl
ican
ts e
xam
inat
ion
The
regu
lati
on d
efin
es t
he e
xam
inat
ion
orga
niza
tion
pro
cedu
re f
or t
he s
ecur
itie
s de
aler
, in
vest
men
ts a
dvis
or a
nd t
heir
rep
rese
ntat
ive.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
secu
riti
es
mar
ket
licen
sing
Def
init
ion
of r
equi
rem
ents
, ti
me
limit
s an
d lic
ensi
ng p
roce
dure
s to
be
follo
wed
by
the
enti
ties
app
lyin
g to
be
prov
ided
lice
nse
to o
pera
te in
sec
urit
ies
mar
ket
mak
e up
the
sco
pe
of t
his
regu
lati
on.
In t
his
fram
e, it
is d
efin
ed t
hat
no e
ntit
y m
ay o
pera
te a
s se
curi
ties
dea
ler
unle
ss it
is li
cens
ed in
adv
ance
by
AFSA
. Th
e se
curi
ties
mar
ket
(sto
ck e
xcha
nge)
org
aniz
es it
s ac
tivi
ty b
ased
on
the
stat
ute
and
rule
s of
tra
de o
pera
tion
, w
hich
bec
ome
subj
ect
to a
dopt
ion
by t
he A
FSA.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
licen
sing
se
curi
ties
dea
ler,
th
e in
vest
men
ts
advi
sor
and
thei
r re
pres
enta
tive
.
This
reg
ulat
ion
expl
icit
ly s
tipu
late
s th
e ac
tive
s fo
r w
hich
the
sec
urit
ies
deal
er,
inve
stm
ents
ad
viso
r an
d th
eir
repr
esen
tati
ve a
re li
cens
ed.
Lice
nsin
g cr
iter
ia t
ake
up a
con
side
rabl
e an
d sp
ecia
l par
t of
the
reg
ulat
ion.
The
se c
rite
ria
defi
ne a
ll ne
cess
ary
docu
men
tati
on t
hat
appl
ican
ts m
ust
pres
ent
in o
rder
to
be li
cens
ed t
o co
nduc
t th
e ac
tivi
ties
, w
hich
fal
l und
er
the
scop
e of
thi
s re
gula
tion
. Th
e AF
SA r
ight
to
acce
pt o
r re
fuse
the
app
licat
ions
is a
pplie
d in
th
e fr
ame
of p
roce
dure
s, w
hich
are
fol
low
ed in
suc
h a
proc
ess.
In a
ddit
ion,
it s
ets
fort
h fe
es
and
com
mis
sion
s to
be
paid
by
the
licen
sed
enti
ties
bot
h, a
t th
e m
omen
t w
hen
issu
ed w
ith
the
licen
se a
nd d
urin
g ex
erci
sing
the
act
ivit
y, f
or w
hich
the
y ha
ve r
ecei
ved
the
licen
se.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
illeg
al p
ract
ices
of
tra
ding
The
regu
lati
on r
efle
cts
mos
t re
cent
gui
danc
e of
CE
re:
trad
e vi
olat
ions
and
pro
tect
ion
agai
nst
them
. Th
e re
gula
tion
pro
vide
s th
e de
fini
tion
of
inte
rnal
info
rmat
ion
by m
eans
of
clea
rly
desc
ribi
ng it
s tw
o ke
y el
emen
ts,
whi
ch a
re t
he a
ccur
ate
natu
re a
nd in
flue
nce
on t
he p
rice
. Th
is d
efin
itio
n co
nsid
ers
it a
mar
ket
viol
atio
n ev
en if
the
per
son,
who
has
per
form
ed t
he a
ctio
n,
did
not
mak
e an
y pr
ofit
. It
is t
he f
irst
tim
e th
at o
blig
atio
ns s
uch
as d
raft
ing
of t
he li
st o
f pe
rson
s w
ith
acce
ss t
o in
tern
al in
form
atio
n, it
s up
dati
ng a
nd t
rans
pare
ncy
to A
FSA
rega
rdin
g tr
ansa
ctio
ns c
arri
ed o
ut b
y co
mpa
ny d
irec
tors
and
per
sons
link
ed w
ith
them
. In
add
itio
n, t
he
regu
lati
on s
ets
fort
h pr
even
tive
mea
sure
s, w
hich
are
con
nect
ed w
ith
the
oblig
atio
ns o
f pe
rson
s pr
ofes
sion
ally
invo
lved
in t
he t
rans
acti
on t
o co
ndem
n an
ille
gal p
ract
ice,
as
wel
l as,
the
ob
ligat
ion
of j
ourn
alis
ts a
nd f
inan
cial
ana
lyst
s to
mak
e tr
ansp
aren
t co
nflic
ts o
f in
tere
st in
the
ir
secu
riti
es r
elat
ed a
rtic
les
and
anal
ysis
.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
5, d
ate
07 D
ecem
ber
2006
of
Fina
ncia
l Sup
ervi
sory
Au
thor
ity
Boar
d
On
the
reta
il m
arke
t on
Gov
ernm
ent
secu
riti
es o
f th
e Re
publ
ic o
f Al
bani
a
This
reg
ulat
ion
expl
icit
ly d
efin
es t
he m
anne
r of
ret
ail m
arke
t fu
ncti
onin
g, t
he m
onit
orin
g an
d tr
ansp
aren
cy p
roce
dure
s w
ith
the
aim
of
prot
ecti
ng in
vest
ors
that
inve
st in
gov
ernm
ent
secu
riti
es.
The
regu
lati
on p
rovi
des
an a
ccur
ate
defi
niti
on o
f re
tail
mar
ket,
typ
e of
tra
nsac
tion
s on
thi
s m
arke
t, t
radi
ng p
roce
dure
s, k
eepi
ng o
f an
alyt
ical
reg
iste
r, o
blig
atio
n to
info
rm a
nd
repo
rt t
o AF
SA.
The
regu
lati
on p
rohi
bits
tra
ding
act
ivit
y in
the
ret
ail m
arke
t of
ban
ks,
whi
ch
are
not
licen
sed
by t
he A
FSA.
Ban
ks,
whi
ch o
pera
te in
ret
ail m
arke
t, m
ust
also
org
aniz
e ke
epin
g of
the
Gov
ernm
ent
secu
riti
es a
naly
tica
l reg
iste
r by
bei
ng is
sued
wit
h a
licen
se f
or
this
typ
e of
act
ivit
y or
, by
mak
ing
an a
gree
men
t w
ith
anot
her
bank
, w
hich
is li
cens
ed f
or
this
pur
pose
.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
the
proc
edur
es o
f m
onit
orin
g re
tail
mar
ket
on G
over
nmen
t se
curi
ties
of
the
Repu
blic
of
Alba
nia
Stip
ulat
ion
of c
ondi
tion
s, m
anne
r an
d pr
oced
ures
of
mon
itor
ing
the
enti
ties
lice
nsed
by
the
AFSA
to
trad
e an
d ke
ep t
he r
egis
ter
on s
ecur
itie
s of
the
Rep
ublic
of
Alba
nia
Gov
ernm
ent
cons
titu
te t
he s
cope
of
this
reg
ulat
ion.
The
tar
get
of t
his
regu
lati
on is
to
prot
ect
secu
riti
es
inve
stor
s’ in
tere
sts
and
impr
ovem
ent
of t
he f
unct
ioni
ng c
ondi
tion
s of
Gov
ernm
ent
secu
riti
es
reta
il m
arke
t.
In S
ecur
itie
s Ar
ea
Lega
l/Re
gula
tory
Re
fere
nce
Des
crip
tion
Law
/Reg
ulat
ion
Des
crip
tion
Law
808
0 da
te
01.0
3.19
96,
chan
ged
by L
aws
No.
816
8,
date
05
Dec
embe
r 19
96 a
nd L
aw N
o. 8
745,
da
te 2
2 Fe
brua
ry 2
001.
On
Secu
riti
es
The
Law
“O
n Se
curi
ties
” is
the
mai
n re
gula
tory
fra
mew
ork
for
func
tion
ing
of r
egul
ator
y.
The
obje
ct o
f th
is la
w is
pro
visi
on o
f in
vest
ors’
pro
tect
ion
in s
ecur
itie
s by
est
ablis
hing
the
re
gula
tory
bod
y, b
y re
gula
ting
sec
urit
ies
mar
kets
and
per
sons
eng
aged
in s
ecur
itie
s in
vest
men
t bu
sine
ss,
and
by c
ontr
ollin
g th
e pu
blic
issu
e of
and
tra
ding
in s
ecur
itie
s. T
his
law
est
ablis
hes
the
regu
lato
ry e
ntit
y w
hich
has
sup
ervi
sory
and
lice
nsin
g au
thor
ity
for
the
secu
riti
es m
arke
t,
and
wit
h fu
rthe
r de
velo
pmen
t of
thi
s m
arke
t, t
he r
egul
ator
will
tak
e th
e at
trib
utes
of
an
inde
pend
ent
agen
cy.
CoM
D N
o. 4
40
date
17
June
200
1
On
the
rule
s re
: fo
rm a
nd c
onte
nt
of a
nnou
ncem
ents
ab
out
inve
stm
ent
acti
vity
in s
ecur
itie
s.
This
dec
isio
n de
fine
s th
e ru
les
in c
onne
ctio
n w
ith
enti
ties
, w
hich
enj
oy t
he r
ight
to
mak
e an
noun
cem
ents
abo
ut s
ecur
itie
s an
d ex
empt
ions
fro
m t
his
rule
, ru
les
in r
elat
ion
to o
rder
s th
at m
ust
be is
sued
by
the
regu
lato
ry b
ody
in c
ases
whe
n it
fin
ds o
ut t
hat
a se
curi
ty r
elat
ed
anno
unce
men
t is
fra
udul
ent,
the
obl
igat
ion
to s
end
a co
py o
f an
noun
cem
ents
to
the
regu
lato
r’s
addr
ess,
and
the
san
ctio
ns o
n ca
ses,
whi
ch a
re v
erif
ies
as r
unni
ng a
gain
st
this
dec
isio
n.
CoM
D N
o. 4
41
date
17
June
200
1
On
the
rule
s of
lead
ing
secu
riti
es
inve
stm
ent
acti
vity
The
goal
of
this
dec
isio
n is
to
stip
ulat
e an
eth
ic,
a be
havi
or o
f pe
rson
s lic
ense
d to
ope
rate
in
sec
urit
ies
mar
ket.
It d
efin
es t
he o
blig
atio
ns v
is-à
-vis
cus
tom
ers,
the
obl
igat
ion
conc
erni
ng
a cl
ear
and
fair
com
mun
icat
ion,
the
obl
igat
ion
to e
xpla
in t
he r
isk
to t
he c
usto
mer
, th
e ob
ligat
ion
to f
amili
ariz
e th
e cu
stom
er w
ith
the
fees
tha
t ar
e ap
plie
d, e
tc.
The
deci
sion
als
o se
ts f
orth
rul
es a
bout
exe
cuti
on u
pon
prio
rity
pri
ncip
le o
f cu
stom
er’s
ord
ers,
qui
ck a
nd f
air
regi
stra
tion
of
eh t
rans
acti
on c
arri
ed o
ut b
y th
e cu
stom
er,
etc.
CoM
D N
o. 4
42
date
17
June
200
1
On
the
fina
ncia
l an
d ac
coun
ting
re
quir
emen
ts o
f se
curi
ties
dea
lers
The
deci
sion
def
ines
the
obl
igat
ions
in t
erm
s of
kee
ping
the
acc
ount
ing
reco
rds,
the
ir
reno
vati
on a
nd m
aint
enan
ce,
the
oblig
atio
n to
dra
ft f
inan
cial
sta
tem
ents
and
the
ir f
orm
an
d co
nten
t. It
pro
vide
s th
e de
fini
tion
“cu
stom
er m
oney
” an
d th
e op
erat
ions
link
ed w
ith
them
. In
add
itio
n, t
he d
ecis
ion
sets
for
th t
he o
blig
atio
n of
lice
nsed
per
son
to a
ssig
n ac
coun
ting
ex
pert
s, t
hus
rein
forc
ing
auth
orit
ies
and
proc
edur
es r
egar
ding
the
ir a
ppoi
ntm
ent
and
dism
issa
l.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
12,
dat
e 29
Ja
nuar
y 20
07 o
f Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
licen
sing
, fe
es
and
com
mis
sion
s Th
e go
al o
f th
is r
egul
atio
n is
to
defi
ne t
he li
cens
ing
proc
edur
es a
nd t
he f
ees
that
ent
itie
s m
ust
pay
case
by
case
dep
endi
ng o
n th
e ac
tivi
ty,
for
whi
ch t
hey
appl
y.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
12,
dat
e 29
Ja
nuar
y 20
07 o
f Fin
anci
al
Supe
rvis
ory
Auth
ority
Boa
rd
On
the
requ
irem
ents
re
: fi
nanc
ial r
esou
rces
of
lice
nsed
per
sons
This
reg
ulat
ion
sets
for
th r
ules
con
cern
ing
min
imum
cap
ital
, lo
w e
nd li
quid
ity
limit
, ob
ligat
ions
of
licen
sed
pers
ons,
def
init
ions
wit
h re
gard
to
appr
oved
inpu
ts a
nd li
quid
inpu
ts
and
thei
r es
tim
ate.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
pros
pect
This
reg
ulat
ion
defi
nes
rule
s ap
plic
able
to
secu
riti
es p
ublic
pro
posa
ls,
whi
ch a
re s
hare
s, b
onds
or
gua
rant
ees,
by
prov
idin
g th
e ex
cept
ions
to
the
gene
ral r
ule.
The
reg
ulat
ion
prov
ides
the
pr
ospe
ct m
anda
tory
for
m a
nd c
onte
nt.
It d
efin
es t
he d
ata
that
mus
t m
ake
up t
he n
arra
tive
par
t of
the
pro
spec
t su
ch a
s re
spon
sibl
e pe
rson
s, a
dvis
ors,
sec
urit
ies
data
, w
ith
whi
ch t
he p
ropo
sal
is li
nked
, ge
nera
l inf
orm
atio
n on
the
issu
es a
nd it
s ca
pita
l, e
tc.
Addi
tion
ally
, th
e re
gula
tion
re
gula
tes
in a
det
aile
d m
anne
r th
e pr
oced
ures
on
the
pros
pect
reg
istr
atio
n; it
set
s fo
rth
the
max
imum
tim
e lim
it o
f a
publ
ic p
ropo
sal,
the
obl
igat
ion
of t
he is
suer
to
repo
rt t
o th
e AF
SA
follo
win
g pr
opos
al c
losu
re a
nd t
he m
easu
res
to e
limin
ate
irre
gula
riti
es d
urin
g th
e pu
blic
pr
opos
al.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
take
-ove
r
The
regu
lati
on e
stab
lishe
s th
e le
gal b
asis
and
it a
pplie
s to
all
prop
osal
s to
tak
e po
sses
sion
of
the
shar
es c
ontr
ol p
acka
ge o
r to
mer
ge j
oint
sto
ck c
ompa
nies
reg
iste
red
in A
lban
ia.
Its
goal
is
to e
nsur
e an
equ
al a
nd f
air
trea
tmen
t of
all
shar
ehol
ders
, w
hich
are
aff
ecte
d tr
ansa
ctio
ns
carr
ied
out
to g
et p
osse
ssio
n of
sha
res
cont
rol p
acka
ge.
This
reg
ulat
ion
impo
ses
the
rule
s of
th
e ga
me.
Pro
posa
ls t
o ge
t po
sses
sion
of
the
cont
rol p
acka
ge m
ust
be m
ade
by t
he d
efin
ed
dead
line
in o
rder
to
prov
ide
shar
ehol
ders
wit
h th
e po
ssib
ility
of
mak
ing
a w
ell-
info
rmed
de
cisi
on.
The
publ
ic e
njoy
s th
e ri
ght
to b
e in
form
ed a
bout
any
sig
nifi
cant
cha
nge
(mor
e or
le
ss t
han
20%
of t
he r
ight
to
vote
).
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
secu
riti
es
regi
stra
rs li
cens
ing
The
scop
e of
thi
s re
gula
tion
is t
he d
efin
itio
n of
req
uire
men
ts,
proc
edur
es a
nd t
ime
limit
s of
lice
nsin
g of
per
sons
who
app
ly t
o be
issu
ed w
ith
licen
se t
o op
erat
e as
sec
urit
ies
regi
stra
r.
Secu
riti
es r
egis
trar
is a
jur
isti
c pe
rson
lice
nsed
by
AFSA
, w
hich
has
org
aniz
atio
n an
d ad
min
istr
atio
n of
sec
urit
ies
regi
ster
s as
the
sco
pe o
f it
s ac
tivi
ty.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
12,
dat
e 29
Ja
nuar
y 20
07 o
f Fin
anci
al
Supe
rvis
ory
Auth
orit
y Bo
ard
On
the
orga
niza
tion
of
appl
ican
ts e
xam
inat
ion
The
regu
lati
on d
efin
es t
he e
xam
inat
ion
orga
niza
tion
pro
cedu
re f
or t
he s
ecur
itie
s de
aler
, in
vest
men
ts a
dvis
or a
nd t
heir
rep
rese
ntat
ive.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
secu
riti
es
mar
ket
licen
sing
Def
init
ion
of r
equi
rem
ents
, ti
me
limit
s an
d lic
ensi
ng p
roce
dure
s to
be
follo
wed
by
the
enti
ties
app
lyin
g to
be
prov
ided
lice
nse
to o
pera
te in
sec
urit
ies
mar
ket
mak
e up
the
sco
pe
of t
his
regu
lati
on.
In t
his
fram
e, it
is d
efin
ed t
hat
no e
ntit
y m
ay o
pera
te a
s se
curi
ties
dea
ler
unle
ss it
is li
cens
ed in
adv
ance
by
AFSA
. Th
e se
curi
ties
mar
ket
(sto
ck e
xcha
nge)
org
aniz
es it
s ac
tivi
ty b
ased
on
the
stat
ute
and
rule
s of
tra
de o
pera
tion
, w
hich
bec
ome
subj
ect
to a
dopt
ion
by t
he A
FSA.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
licen
sing
se
curi
ties
dea
ler,
th
e in
vest
men
ts
advi
sor
and
thei
r re
pres
enta
tive
.
This
reg
ulat
ion
expl
icit
ly s
tipu
late
s th
e ac
tive
s fo
r w
hich
the
sec
urit
ies
deal
er,
inve
stm
ents
ad
viso
r an
d th
eir
repr
esen
tati
ve a
re li
cens
ed.
Lice
nsin
g cr
iter
ia t
ake
up a
con
side
rabl
e an
d sp
ecia
l par
t of
the
reg
ulat
ion.
The
se c
rite
ria
defi
ne a
ll ne
cess
ary
docu
men
tati
on t
hat
appl
ican
ts m
ust
pres
ent
in o
rder
to
be li
cens
ed t
o co
nduc
t th
e ac
tivi
ties
, w
hich
fal
l und
er
the
scop
e of
thi
s re
gula
tion
. Th
e AF
SA r
ight
to
acce
pt o
r re
fuse
the
app
licat
ions
is a
pplie
d in
th
e fr
ame
of p
roce
dure
s, w
hich
are
fol
low
ed in
suc
h a
proc
ess.
In a
ddit
ion,
it s
ets
fort
h fe
es
and
com
mis
sion
s to
be
paid
by
the
licen
sed
enti
ties
bot
h, a
t th
e m
omen
t w
hen
issu
ed w
ith
the
licen
se a
nd d
urin
g ex
erci
sing
the
act
ivit
y, f
or w
hich
the
y ha
ve r
ecei
ved
the
licen
se.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
illeg
al p
ract
ices
of
tra
ding
The
regu
lati
on r
efle
cts
mos
t re
cent
gui
danc
e of
CE
re:
trad
e vi
olat
ions
and
pro
tect
ion
agai
nst
them
. Th
e re
gula
tion
pro
vide
s th
e de
fini
tion
of
inte
rnal
info
rmat
ion
by m
eans
of
clea
rly
desc
ribi
ng it
s tw
o ke
y el
emen
ts,
whi
ch a
re t
he a
ccur
ate
natu
re a
nd in
flue
nce
on t
he p
rice
. Th
is d
efin
itio
n co
nsid
ers
it a
mar
ket
viol
atio
n ev
en if
the
per
son,
who
has
per
form
ed t
he a
ctio
n,
did
not
mak
e an
y pr
ofit
. It
is t
he f
irst
tim
e th
at o
blig
atio
ns s
uch
as d
raft
ing
of t
he li
st o
f pe
rson
s w
ith
acce
ss t
o in
tern
al in
form
atio
n, it
s up
dati
ng a
nd t
rans
pare
ncy
to A
FSA
rega
rdin
g tr
ansa
ctio
ns c
arri
ed o
ut b
y co
mpa
ny d
irec
tors
and
per
sons
link
ed w
ith
them
. In
add
itio
n, t
he
regu
lati
on s
ets
fort
h pr
even
tive
mea
sure
s, w
hich
are
con
nect
ed w
ith
the
oblig
atio
ns o
f pe
rson
s pr
ofes
sion
ally
invo
lved
in t
he t
rans
acti
on t
o co
ndem
n an
ille
gal p
ract
ice,
as
wel
l as,
the
ob
ligat
ion
of j
ourn
alis
ts a
nd f
inan
cial
ana
lyst
s to
mak
e tr
ansp
aren
t co
nflic
ts o
f in
tere
st in
the
ir
secu
riti
es r
elat
ed a
rtic
les
and
anal
ysis
.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
5, d
ate
07 D
ecem
ber
2006
of
Fina
ncia
l Sup
ervi
sory
Au
thor
ity
Boar
d
On
the
reta
il m
arke
t on
Gov
ernm
ent
secu
riti
es o
f th
e Re
publ
ic o
f Al
bani
a
This
reg
ulat
ion
expl
icit
ly d
efin
es t
he m
anne
r of
ret
ail m
arke
t fu
ncti
onin
g, t
he m
onit
orin
g an
d tr
ansp
aren
cy p
roce
dure
s w
ith
the
aim
of
prot
ecti
ng in
vest
ors
that
inve
st in
gov
ernm
ent
secu
riti
es.
The
regu
lati
on p
rovi
des
an a
ccur
ate
defi
niti
on o
f re
tail
mar
ket,
typ
e of
tra
nsac
tion
s on
thi
s m
arke
t, t
radi
ng p
roce
dure
s, k
eepi
ng o
f an
alyt
ical
reg
iste
r, o
blig
atio
n to
info
rm a
nd
repo
rt t
o AF
SA.
The
regu
lati
on p
rohi
bits
tra
ding
act
ivit
y in
the
ret
ail m
arke
t of
ban
ks,
whi
ch
are
not
licen
sed
by t
he A
FSA.
Ban
ks,
whi
ch o
pera
te in
ret
ail m
arke
t, m
ust
also
org
aniz
e ke
epin
g of
the
Gov
ernm
ent
secu
riti
es a
naly
tica
l reg
iste
r by
bei
ng is
sued
wit
h a
licen
se f
or
this
typ
e of
act
ivit
y or
, by
mak
ing
an a
gree
men
t w
ith
anot
her
bank
, w
hich
is li
cens
ed f
or
this
pur
pose
.
Regu
lati
on a
dopt
ed
by D
ecis
ion
No.
12,
da
te 2
9 Ja
nuar
y 20
07
of F
inan
cial
Sup
ervi
sory
Au
thor
ity
Boar
d
On
the
proc
edur
es o
f m
onit
orin
g re
tail
mar
ket
on G
over
nmen
t se
curi
ties
of
the
Repu
blic
of
Alba
nia
Stip
ulat
ion
of c
ondi
tion
s, m
anne
r an
d pr
oced
ures
of
mon
itor
ing
the
enti
ties
lice
nsed
by
the
AFSA
to
trad
e an
d ke
ep t
he r
egis
ter
on s
ecur
itie
s of
the
Rep
ublic
of
Alba
nia
Gov
ernm
ent
cons
titu
te t
he s
cope
of
this
reg
ulat
ion.
The
tar
get
of t
his
regu
lati
on is
to
prot
ect
secu
riti
es
inve
stor
s’ in
tere
sts
and
impr
ovem
ent
of t
he f
unct
ioni
ng c
ondi
tion
s of
Gov
ernm
ent
secu
riti
es
reta
il m
arke
t.
In S
ecur
itie
s Ar
ea
Lega
l/Re
gula
tory
Re
fere
nce
Law
/Reg
ulat
ion
Des
crip
tion
Des
crip
tion
Law
No.
794
3, d
ate
01 J
une
1995
, ch
ange
d by
Law
No.
839
3, d
ate
02 S
epte
mbe
r 19
98 a
nd
Law
No.
918
1, d
ate
05 F
ebru
ary
2004
On
Supp
lem
enta
ry p
ensi
ons
and
pens
ions
pri
vate
inst
itut
ions
. Th
e sc
ope
of t
his
law
is t
he r
egul
atio
n of
pri
vate
pen
sion
s in
sura
nce
by p
ensi
ons
priv
ate
inst
itut
ions
, th
eir
esta
blis
hmen
t ac
tivi
ty,
thei
r lic
ensi
ng a
nd c
ontr
ol.
CoM
D N
o. 9
08,
date
29.
12.2
004
On
the
licen
sing
and
sup
ervi
sory
pr
oced
ures
of
pens
ions
pri
vate
in
stit
utio
ns
The
deci
sion
def
ines
the
nec
essa
ry d
ocum
enta
tion
to
rece
ive
the
perm
it t
o op
erat
e as
pri
vate
inst
itut
ions
for
pen
sion
s, t
he c
ondi
tion
s of
issu
ing
and
revo
king
th
e pe
rmit
, as
wel
l as,
the
sup
ervi
sory
and
fin
anci
al c
ontr
ol p
roce
dure
s.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
16,
dat
e 08
Fe
brua
ry 2
007
of t
he
Fina
ncia
l Sup
ervi
sory
Au
thor
ity
Boar
d
On
the
proc
edur
es o
f lic
ensi
ng
and
revi
ewin
g th
e ap
plic
atio
ns o
f is
suin
g th
e pe
rmit
to
oper
ate
as a
su
pple
men
tary
pen
sion
s pr
ivat
e in
stit
utio
n.
The
scop
e of
thi
s re
gula
tion
is t
he d
ocum
enta
tion
pre
sent
atio
n m
anne
r fo
r lic
ensi
ng a
nd t
he p
roce
dure
fol
low
ed b
y th
e AF
SA w
hen
issu
ing
the
perm
it t
o op
erat
e as
a s
uppl
emen
tary
pen
sion
s pr
ivat
e in
stit
utio
n.
Regu
lati
on a
dopt
ed b
y D
ecis
ion
No.
15,
dat
e 08
Fe
brua
ry 2
007
of t
he
Fina
ncia
l Sup
ervi
sory
Au
thor
ity
Boar
d
On
supe
rvis
ion
and
fina
ncia
l co
ntro
l of
supp
lem
enta
ry p
ensi
ons
priv
ate
inst
itut
ions
.
The
goal
of
this
reg
ulat
ion
is t
o dr
aft
the
prog
ram
of
the
cont
rol e
xerc
ised
by
AFSA
to
the
supp
lem
enta
ry p
ensi
ons
priv
ate
inst
itut
ions
, th
e co
ntro
l con
duct
ing
proc
edur
es,
draf
ting
of
the
cont
rol r
epor
t an
d se
ttin
g of
con
trol
sta
ndar
ds.
In P
riva
te S
uppl
emen
tary
Pen
sion
s Ar
ea
A N N U A L R E P O R T ‘ 0 658
APPENDIX C: List of Supervised Institutions
Insu
ranc
e M
arke
t
1. IN
SIG
S.A
2. S
IGM
A S.
A
3. S
IGAL
S.A
4.
ATL
ANTI
K S
.A
Exec
utiv
e D
irec
tor
Saim
ir Z
EMBL
AKU
Q
emal
DIS
HA
Avni
PO
NAR
I D
rita
n ÇE
LAJ
Scop
e of
Act
ivit
y Li
fe +
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Type
of
Ow
ners
hip
Stat
e +
fore
ign
stoc
k co
mpa
ny
Dom
esti
c st
ock
com
pany
D
omes
tic
and
fore
ign
stoc
k co
mpa
ny
Shoq
ëri m
e ka
pita
l ven
das
Off
ice
Add
ress
Rr
. “D
ibrë
s” N
r. 9
1, T
iran
a Rr
“A
. Fr
ashë
ri”,
sh
eshi
Will
son,
P.
O.B
. N
o. 1
714,
Tir
ana
Bul.
“Zo
gu I”
, N
r.1
, P.
O.B
. N
o.23
87,
Tira
naRr
. “T
hem
isto
kli G
ërm
enji
”,
3/1,
Tir
ana
Tel.
/Fax
+355
4 2
34 1
70
+355
4 2
58 2
54,
+355
4 2
5825
3 +3
55 4
250
220
+3
55 4
230
506
,+3
55 4
235
088
Web
page
w
ww
.ins
ig.c
om.a
l w
ww
.sig
ma-
insu
ranc
e.co
m
ww
w.s
igal
.com
.al
ww
w.a
tlan
tik.
com
.al
E-m
ail
info
@in
sig.
com
si
gma_
sha@
insu
rer.
com
in
fo@
siga
l.co
m.a
l at
lant
ik@
atla
ntik
.com
.al
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 0
3 an
d 04
, da
te.
08 J
une
2000
Dec
isio
n N
o. 0
1,
date
03
Mar
ch 1
999
Dec
isio
n N
o. 0
2,
date
. 23
Jun
e 19
99D
ecis
ion
No.
5,
date
. 13
Apr
il 20
01
5. IN
TERS
IG S
.A
6.
ALB
SIG
S.A
7.
INTE
RALB
ANIA
N S
.A
8. E
URO
SIG
S.A
Exec
utiv
e D
irec
tor
Vang
jel B
IRBO
G
ezim
HU
QI
Bard
hyl M
INXH
OZI
M
ysly
m N
ELA
Scop
e of
Act
ivit
y N
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
e
Type
of
Ow
ners
hip
Nat
iona
l sto
ck c
ompa
nyN
atio
nal s
tock
com
pany
Nat
iona
l sto
ck c
ompa
nyN
atio
nal s
tock
com
pany
Off
ice
Add
ress
Rr
. “B
arri
kada
ve”
Pall.
122
, Ap
1/1,
Tir
ana
Rr.,
”Pun
ëtor
et e
Rili
ndje
s”,
Nr.
10,
Tira
na
Zaye
d Bu
sine
ss C
ente
r,
Kuti
a Po
star
e N
r.27
7/1,
Tir
ana
Rr “
Lek
Duk
agji
ni”,
N
r. 5
, Ti
rana
Tel.
/Fax
+355
4 2
3561
4,+
355
4 23
2462
+3
55 4
254
761
,+3
55 4
254
764
+355
4 2
29 5
51,
+355
4 2
2957
8 +3
55 4
238
899
,+3
55 4
223
841
Web
page
la.gisorue.
ww
w
moc.nainablaretni.w
ww
la.moc.gisbla.
ww
w
E-m
ail
inte
rsig
@al
bani
aonl
ine.
net
info
@al
bsig
.com
.al
ttro
qe@
inte
ralb
ania
n.co
in
fo@
euro
sig.
al
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 6
, da
te 1
3 Se
ptem
ber
2001
Cour
t D
ecis
ion
No.
307
56
date
09
Sept
embe
r 20
04
Dec
ison
No.
9,
date
19
July
200
420
Sep
tem
ber
2004
9. S
ICRE
D S
.A
10.
SIG
AL-L
IFE
S.A
Exec
utiv
e D
irec
tor
JAHX
OH nivdE
JAHX
OK cneG
Scop
e of
Act
ivit
y Li
fe In
sura
nce
Life
Insu
ranc
e
Type
of
Ow
ners
hip
Nat
iona
l sto
ck c
ompa
nyN
atio
nal a
nd f
orei
gn
stoc
k co
mpa
ny
Off
ice
Add
ress
Rr
. “S
ami F
rash
ëri”
,
Pall.
20,
Tir
ana
Bul.
“Zo
gu I”
,
Pall.
Dip
lom
atëv
e.
Nr
57,
Tira
na
Tel.
/Fax
803 332 4 553+ 945 732 4 553+
Web
page
la.
moc.lagis.w
ww
la.moc.dercis.
ww
w
E-m
ail
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@efilofni la.
moc.dercis@tcatnoc
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 9
, da
te 2
6 Ju
ly 2
004
01 M
arch
200
5
Secu
riti
es M
arke
t
1. T
IRAN
A BA
NK
S.A.
2. A
LBAN
IAN
SH
ARE
REG
ISTE
R S.
A.3.
TRI
UM
F G
ROU
P S.
A.
Exec
utiv
e D
irec
tor
ILEJG
NA aleriM
JAHA
HS notnE SITE
GNARF sirti
miD
Scop
e of
Act
ivit
y D
eale
rCo
rpor
ate
regi
stra
r Tr
easu
ry b
onds
dea
ler
Type
of
Ow
ners
hip
Fore
ign
Stoc
k Co
mpa
ny
Stat
e st
ock
com
pany
D
omes
tic
priv
ate
stoc
k co
mpa
ny
Off
ice
Add
ress
Rr
. “D
ëshm
orët
e 4
Shk
urti
t”,
Tira
na
Rr.
“Pun
ëtor
ët e
Rili
ndje
s”,
Nr.
13,
Tira
na
Rr.
“M.
Gjo
llesh
a”,
Ku
lla 2
, ap
.13,
Tir
ana
Tel.
/Fax
+355
4 2
6961
6, +
355
4 26
9707
+3
55 4
233
442,
+35
5 4
2334
25
+355
68
2058
275
/ +3
55 4
256
081
Web
page
la.knabanarit.
ww
w
E-m
ail
ten.knabanarit@ofni
Lice
nse
Issu
ance
Dat
e 3002.11.42
2002.11.50 2002.11.50
Lice
nse
Expi
rati
on D
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
4. B
ALLK
AN G
ROU
P-01
S.A
.5.
PO
PULA
R BA
NK
S.A.
6. T
IRAN
A ST
OCK
EXH
ANG
E S.
A.
Exec
utiv
e D
irec
tor
JARERUF alinA
AVO
HOBIL nivdE
JAMAR icne
G
Scop
e of
Act
ivit
y Se
curi
ties
org
aniz
ed t
rade
D
eale
rG
over
nmen
t bo
nds
deal
er
Type
of
Ow
ners
hip
Dom
esti
c pr
ivat
e st
ock
com
pany
D
omes
tic
priv
ate
stoc
k co
mpa
ny
Stat
e st
ock
com
pany
Off
ice
Add
ress
Rr
. “R
eshi
t Ço
llaku
”, P
all.
7-k
atës
h
tek
Shal
lvar
et,
shk.
2/6.
Tir
ana
Rr.
“Don
ika
Kast
riot
i”,
N
r.11
/1,
Tira
na
Rr.
“Dor
a D
’Ist
ria”
, N
r.2,
P.
O.B
. 27
4/1,
Tir
ana
Tel.
/Fax
+355
4 2
3353
7, +
355
4 23
3537
+3
55 4
272
790/
1, +
355
4 27
2781
+3
55 4
265
058
Web
page
la.
moc.est.w
ww
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ww
w
E-m
ail
moc.la-
mocba@ofniest
moc.erollupopb
@ofni
Lice
nse
Issu
ance
Dat
e 01
Jul
y 20
0523
Mar
ch 2
005
24.1
1.20
03
Lice
nse
Expi
rati
on D
ate
01 J
uly
2007
No
expi
rati
on d
ate
No
expi
rati
on d
ate
7. R
AIFF
EISE
N B
ANK
S.A.
8. A
MER
ICAN
BAN
K O
F AL
BAN
IA S
.A.
9. N
ATIO
NAL
CO
MM
ERCI
AL
BAN
K S.
A.
Dre
jtor
Ekz
ekut
iv
OR ocneroL
DURE
NUR
G nevetS LI
GILPACNEP nahyeS
IRACN
Scop
e of
Act
ivit
y D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
Type
of
Ow
ners
hip
Fore
ign
stoc
k co
mpa
ny
Fore
ign
stoc
k co
mpa
ny
Fore
ign
stoc
k co
mpa
ny
Off
ice
Add
ress
Eu
rope
an T
rade
Cen
ter,
Bu
l. “
Bajr
am C
urri
”, T
iran
a Rr
. “I
smai
l Qem
ali”
, N
r. 2
7, T
iran
a Bu
l. “
Zhan
D’a
rk”,
Tir
ana
Tel.
/Fax
+355
4 2
2454
0, +
355
4 23
0013
+3
55 4
248
753/
4/5/
6/7,
+35
5 4
2201
60
+355
4 2
5095
5, +
355
4 25
0956
Web
page
la.
moc.tkb.w
ww
moc.blaknab
ma.w
ww
la.nesieffiar.w
ww
E-m
ail
c.blaknabma
@knabnacirema
om
in
fo@
bkt.
com
.al
Lice
nse
Issu
ance
Dat
e 5002.21.12
5002.11.42 5002.90.82
Lice
nse
Expi
rati
on D
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
10.
ALPH
A BA
NK
- Ti
rana
S.A
.11
. CR
EDIN
S BA
NK
S.A.
12.
ITAL
IAN
-ALB
ANIA
N B
ANK
S.A.
Dre
jtor
Ekz
ekut
iv
AU
QSAPARTSAM igiuL
OT
NAS natrA SAL
UOTALA
G saerdnA
Scop
e of
Act
ivit
y Tr
easu
ry b
onds
Dea
ler
and
Regi
stra
r Tr
easu
ry b
onds
Dea
ler
and
Regi
stra
r Tr
easu
ry b
onds
dea
ler
Type
of
Ow
ners
hip
Fore
ign
stoc
k co
mpa
nyFo
reig
n st
ock
com
pany
Dom
esti
c pr
ivat
e st
ock
com
pany
Off
ice
Add
ress
Bu
l. “
Zogu
I”,
Nr.
47/
1, T
iran
a Rr
.”Is
mai
l Qem
ali”
, N
r. 2
1, T
iran
a Rr
. “B
arri
kada
ve”,
Nr.
1, T
iran
a
Tel.
/Fax
+355
4 2
40 4
78,
+355
4 2
3210
2 +3
55 4
234
096,
+35
5 4
2587
52
+355
4 2
3396
6, +
355
4 23
5700
Web
page
la.
moc.aib.w
ww
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w
E-m
ail
la.moc.aib
@aitaib
moc.snidercaknab@ofni
Lice
nse
Issu
ance
Dat
e 08
May
200
60
6002.20.31
Lice
nse
Expi
rati
on D
ate
08 M
ay 2
007
No
expi
rati
on d
ate
No
expi
rati
on d
ate
59A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y
Insu
ranc
e M
arke
t
1. IN
SIG
S.A
2. S
IGM
A S.
A
3. S
IGAL
S.A
4.
ATL
ANTI
K S
.A
Exec
utiv
e D
irec
tor
Saim
ir Z
EMBL
AKU
Q
emal
DIS
HA
Avni
PO
NAR
I D
rita
n ÇE
LAJ
Scop
e of
Act
ivit
y Li
fe +
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Type
of
Ow
ners
hip
Stat
e +
fore
ign
stoc
k co
mpa
ny
Dom
esti
c st
ock
com
pany
D
omes
tic
and
fore
ign
stoc
k co
mpa
ny
Shoq
ëri m
e ka
pita
l ven
das
Off
ice
Add
ress
Rr
. “D
ibrë
s” N
r. 9
1, T
iran
a Rr
“A
. Fr
ashë
ri”,
sh
eshi
Will
son,
P.
O.B
. N
o. 1
714,
Tir
ana
Bul.
“Zo
gu I”
, N
r.1
, P.
O.B
. N
o.23
87,
Tira
naRr
. “T
hem
isto
kli G
ërm
enji
”,
3/1,
Tir
ana
Tel.
/Fax
+355
4 2
34 1
70
+355
4 2
58 2
54,
+355
4 2
5825
3 +3
55 4
250
220
+3
55 4
230
506
,+3
55 4
235
088
Web
page
w
ww
.ins
ig.c
om.a
l w
ww
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ma-
insu
ranc
e.co
m
ww
w.s
igal
.com
.al
ww
w.a
tlan
tik.
com
.al
E-m
ail
info
@in
sig.
com
si
gma_
sha@
insu
rer.
com
in
fo@
siga
l.co
m.a
l at
lant
ik@
atla
ntik
.com
.al
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 0
3 an
d 04
, da
te.
08 J
une
2000
Dec
isio
n N
o. 0
1,
date
03
Mar
ch 1
999
Dec
isio
n N
o. 0
2,
date
. 23
Jun
e 19
99D
ecis
ion
No.
5,
date
. 13
Apr
il 20
01
5. IN
TERS
IG S
.A
6.
ALB
SIG
S.A
7.
INTE
RALB
ANIA
N S
.A
8. E
URO
SIG
S.A
Exec
utiv
e D
irec
tor
Vang
jel B
IRBO
G
ezim
HU
QI
Bard
hyl M
INXH
OZI
M
ysly
m N
ELA
Scop
e of
Act
ivit
y N
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
e
Type
of
Ow
ners
hip
Nat
iona
l sto
ck c
ompa
nyN
atio
nal s
tock
com
pany
Nat
iona
l sto
ck c
ompa
nyN
atio
nal s
tock
com
pany
Off
ice
Add
ress
Rr
. “B
arri
kada
ve”
Pall.
122
, Ap
1/1,
Tir
ana
Rr.,
”Pun
ëtor
et e
Rili
ndje
s”,
Nr.
10,
Tira
na
Zaye
d Bu
sine
ss C
ente
r,
Kuti
a Po
star
e N
r.27
7/1,
Tir
ana
Rr “
Lek
Duk
agji
ni”,
N
r. 5
, Ti
rana
Tel.
/Fax
+355
4 2
3561
4,+
355
4 23
2462
+3
55 4
254
761
,+3
55 4
254
764
+355
4 2
29 5
51,
+355
4 2
2957
8 +3
55 4
238
899
,+3
55 4
223
841
Web
page
la.gisorue.
ww
w
moc.nainablaretni.w
ww
la.moc.gisbla.
ww
w
E-m
ail
inte
rsig
@al
bani
aonl
ine.
net
info
@al
bsig
.com
.al
ttro
qe@
inte
ralb
ania
n.co
in
fo@
euro
sig.
al
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 6
, da
te 1
3 Se
ptem
ber
2001
Cour
t D
ecis
ion
No.
307
56
date
09
Sept
embe
r 20
04
Dec
ison
No.
9,
date
19
July
200
420
Sep
tem
ber
2004
9. S
ICRE
D S
.A
10.
SIG
AL-L
IFE
S.A
Exec
utiv
e D
irec
tor
JAHX
OH nivdE
JAHX
OK cneG
Scop
e of
Act
ivit
y Li
fe In
sura
nce
Life
Insu
ranc
e
Type
of
Ow
ners
hip
Nat
iona
l sto
ck c
ompa
nyN
atio
nal a
nd f
orei
gn
stoc
k co
mpa
ny
Off
ice
Add
ress
Rr
. “S
ami F
rash
ëri”
,
Pall.
20,
Tir
ana
Bul.
“Zo
gu I”
,
Pall.
Dip
lom
atëv
e.
Nr
57,
Tira
na
Tel.
/Fax
803 332 4 553+ 945 732 4 553+
Web
page
la.
moc.lagis.w
ww
la.moc.dercis.
ww
w
E-m
ail
la.moc.lagis
@efilofni la.
moc.dercis@tcatnoc
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 9
, da
te 2
6 Ju
ly 2
004
01 M
arch
200
5
Secu
riti
es M
arke
t
1. T
IRAN
A BA
NK
S.A.
2. A
LBAN
IAN
SH
ARE
REG
ISTE
R S.
A.3.
TRI
UM
F G
ROU
P S.
A.
Exec
utiv
e D
irec
tor
ILEJG
NA aleriM
JAHA
HS notnE SITE
GNARF sirti
miD
Scop
e of
Act
ivit
y D
eale
rCo
rpor
ate
regi
stra
r Tr
easu
ry b
onds
dea
ler
Type
of
Ow
ners
hip
Fore
ign
Stoc
k Co
mpa
ny
Stat
e st
ock
com
pany
D
omes
tic
priv
ate
stoc
k co
mpa
ny
Off
ice
Add
ress
Rr
. “D
ëshm
orët
e 4
Shk
urti
t”,
Tira
na
Rr.
“Pun
ëtor
ët e
Rili
ndje
s”,
Nr.
13,
Tira
na
Rr.
“M.
Gjo
llesh
a”,
Ku
lla 2
, ap
.13,
Tir
ana
Tel.
/Fax
+355
4 2
6961
6, +
355
4 26
9707
+3
55 4
233
442,
+35
5 4
2334
25
+355
68
2058
275
/ +3
55 4
256
081
Web
page
la.knabanarit.
ww
w
E-m
ail
ten.knabanarit@ofni
Lice
nse
Issu
ance
Dat
e 3002.11.42
2002.11.50 2002.11.50
Lice
nse
Expi
rati
on D
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
4. B
ALLK
AN G
ROU
P-01
S.A
.5.
PO
PULA
R BA
NK
S.A.
6. T
IRAN
A ST
OCK
EXH
ANG
E S.
A.
Exec
utiv
e D
irec
tor
JARERUF alinA
AVO
HOBIL nivdE
JAMAR icne
G
Scop
e of
Act
ivit
y Se
curi
ties
org
aniz
ed t
rade
D
eale
rG
over
nmen
t bo
nds
deal
er
Type
of
Ow
ners
hip
Dom
esti
c pr
ivat
e st
ock
com
pany
D
omes
tic
priv
ate
stoc
k co
mpa
ny
Stat
e st
ock
com
pany
Off
ice
Add
ress
Rr
. “R
eshi
t Ço
llaku
”, P
all.
7-k
atës
h
tek
Shal
lvar
et,
shk.
2/6.
Tir
ana
Rr.
“Don
ika
Kast
riot
i”,
N
r.11
/1,
Tira
na
Rr.
“Dor
a D
’Ist
ria”
, N
r.2,
P.
O.B
. 27
4/1,
Tir
ana
Tel.
/Fax
+355
4 2
3353
7, +
355
4 23
3537
+3
55 4
272
790/
1, +
355
4 27
2781
+3
55 4
265
058
Web
page
la.
moc.est.w
ww
moc.erollupopb.
ww
w
E-m
ail
moc.la-
mocba@ofniest
moc.erollupopb
@ofni
Lice
nse
Issu
ance
Dat
e 01
Jul
y 20
0523
Mar
ch 2
005
24.1
1.20
03
Lice
nse
Expi
rati
on D
ate
01 J
uly
2007
No
expi
rati
on d
ate
No
expi
rati
on d
ate
7. R
AIFF
EISE
N B
ANK
S.A.
8. A
MER
ICAN
BAN
K O
F AL
BAN
IA S
.A.
9. N
ATIO
NAL
CO
MM
ERCI
AL
BAN
K S.
A.
Dre
jtor
Ekz
ekut
iv
OR ocneroL
DURE
NUR
G nevetS LI
GILPACNEP nahyeS
IRACN
Scop
e of
Act
ivit
y D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
Type
of
Ow
ners
hip
Fore
ign
stoc
k co
mpa
ny
Fore
ign
stoc
k co
mpa
ny
Fore
ign
stoc
k co
mpa
ny
Off
ice
Add
ress
Eu
rope
an T
rade
Cen
ter,
Bu
l. “
Bajr
am C
urri
”, T
iran
a Rr
. “I
smai
l Qem
ali”
, N
r. 2
7, T
iran
a Bu
l. “
Zhan
D’a
rk”,
Tir
ana
Tel.
/Fax
+355
4 2
2454
0, +
355
4 23
0013
+3
55 4
248
753/
4/5/
6/7,
+35
5 4
2201
60
+355
4 2
5095
5, +
355
4 25
0956
Web
page
la.
moc.tkb.w
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moc.blaknab
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om
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Lice
nse
Issu
ance
Dat
e 5002.21.12
5002.11.42 5002.90.82
Lice
nse
Expi
rati
on D
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
10.
ALPH
A BA
NK
- Ti
rana
S.A
.11
. CR
EDIN
S BA
NK
S.A.
12.
ITAL
IAN
-ALB
ANIA
N B
ANK
S.A.
Dre
jtor
Ekz
ekut
iv
AU
QSAPARTSAM igiuL
OT
NAS natrA SAL
UOTALA
G saerdnA
Scop
e of
Act
ivit
y Tr
easu
ry b
onds
Dea
ler
and
Regi
stra
r Tr
easu
ry b
onds
Dea
ler
and
Regi
stra
r Tr
easu
ry b
onds
dea
ler
Type
of
Ow
ners
hip
Fore
ign
stoc
k co
mpa
nyFo
reig
n st
ock
com
pany
Dom
esti
c pr
ivat
e st
ock
com
pany
Off
ice
Add
ress
Bu
l. “
Zogu
I”,
Nr.
47/
1, T
iran
a Rr
.”Is
mai
l Qem
ali”
, N
r. 2
1, T
iran
a Rr
. “B
arri
kada
ve”,
Nr.
1, T
iran
a
Tel.
/Fax
+355
4 2
40 4
78,
+355
4 2
3210
2 +3
55 4
234
096,
+35
5 4
2587
52
+355
4 2
3396
6, +
355
4 23
5700
Web
page
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Lice
nse
Issu
ance
Dat
e 08
May
200
60
6002.20.31
Lice
nse
Expi
rati
on D
ate
08 M
ay 2
007
No
expi
rati
on d
ate
No
expi
rati
on d
ate
60 A N N U A L R E P O R T ‘ 0 6
Insu
ranc
e M
arke
t
1. IN
SIG
S.A
2. S
IGM
A S.
A
3. S
IGAL
S.A
4.
ATL
ANTI
K S
.A
Exec
utiv
e D
irec
tor
Saim
ir Z
EMBL
AKU
Q
emal
DIS
HA
Avni
PO
NAR
I D
rita
n ÇE
LAJ
Scop
e of
Act
ivit
y Li
fe +
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Type
of
Ow
ners
hip
Stat
e +
fore
ign
stoc
k co
mpa
ny
Dom
esti
c st
ock
com
pany
D
omes
tic
and
fore
ign
stoc
k co
mpa
ny
Shoq
ëri m
e ka
pita
l ven
das
Off
ice
Add
ress
Rr
. “D
ibrë
s” N
r. 9
1, T
iran
a Rr
“A
. Fr
ashë
ri”,
sh
eshi
Will
son,
P.
O.B
. N
o. 1
714,
Tir
ana
Bul.
“Zo
gu I”
, N
r.1
, P.
O.B
. N
o.23
87,
Tira
naRr
. “T
hem
isto
kli G
ërm
enji
”,
3/1,
Tir
ana
Tel.
/Fax
+355
4 2
34 1
70
+355
4 2
58 2
54,
+355
4 2
5825
3 +3
55 4
250
220
+3
55 4
230
506
,+3
55 4
235
088
Web
page
w
ww
.ins
ig.c
om.a
l w
ww
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ma-
insu
ranc
e.co
m
ww
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igal
.com
.al
ww
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tlan
tik.
com
.al
E-m
ail
info
@in
sig.
com
si
gma_
sha@
insu
rer.
com
in
fo@
siga
l.co
m.a
l at
lant
ik@
atla
ntik
.com
.al
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 0
3 an
d 04
, da
te.
08 J
une
2000
Dec
isio
n N
o. 0
1,
date
03
Mar
ch 1
999
Dec
isio
n N
o. 0
2,
date
. 23
Jun
e 19
99D
ecis
ion
No.
5,
date
. 13
Apr
il 20
01
5. IN
TERS
IG S
.A
6.
ALB
SIG
S.A
7.
INTE
RALB
ANIA
N S
.A
8. E
URO
SIG
S.A
Exec
utiv
e D
irec
tor
Vang
jel B
IRBO
G
ezim
HU
QI
Bard
hyl M
INXH
OZI
M
ysly
m N
ELA
Scop
e of
Act
ivit
y N
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
e
Type
of
Ow
ners
hip
Nat
iona
l sto
ck c
ompa
nyN
atio
nal s
tock
com
pany
Nat
iona
l sto
ck c
ompa
nyN
atio
nal s
tock
com
pany
Off
ice
Add
ress
Rr
. “B
arri
kada
ve”
Pall.
122
, Ap
1/1,
Tir
ana
Rr.,
”Pun
ëtor
et e
Rili
ndje
s”,
Nr.
10,
Tira
na
Zaye
d Bu
sine
ss C
ente
r,
Kuti
a Po
star
e N
r.27
7/1,
Tir
ana
Rr “
Lek
Duk
agji
ni”,
N
r. 5
, Ti
rana
Tel.
/Fax
+355
4 2
3561
4,+
355
4 23
2462
+3
55 4
254
761
,+3
55 4
254
764
+355
4 2
29 5
51,
+355
4 2
2957
8 +3
55 4
238
899
,+3
55 4
223
841
Web
page
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ww
w
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ww
la.moc.gisbla.
ww
w
E-m
ail
inte
rsig
@al
bani
aonl
ine.
net
info
@al
bsig
.com
.al
ttro
qe@
inte
ralb
ania
n.co
in
fo@
euro
sig.
al
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 6
, da
te 1
3 Se
ptem
ber
2001
Cour
t D
ecis
ion
No.
307
56
date
09
Sept
embe
r 20
04
Dec
ison
No.
9,
date
19
July
200
420
Sep
tem
ber
2004
9. S
ICRE
D S
.A
10.
SIG
AL-L
IFE
S.A
Exec
utiv
e D
irec
tor
JAHX
OH nivdE
JAHX
OK cneG
Scop
e of
Act
ivit
y Li
fe In
sura
nce
Life
Insu
ranc
e
Type
of
Ow
ners
hip
Nat
iona
l sto
ck c
ompa
nyN
atio
nal a
nd f
orei
gn
stoc
k co
mpa
ny
Off
ice
Add
ress
Rr
. “S
ami F
rash
ëri”
,
Pall.
20,
Tir
ana
Bul.
“Zo
gu I”
,
Pall.
Dip
lom
atëv
e.
Nr
57,
Tira
na
Tel.
/Fax
803 332 4 553+ 945 732 4 553+
Web
page
la.
moc.lagis.w
ww
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ail
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moc.dercis@tcatnoc
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 9
, da
te 2
6 Ju
ly 2
004
01 M
arch
200
5
Secu
riti
es M
arke
t
1. T
IRAN
A BA
NK
S.A.
2. A
LBAN
IAN
SH
ARE
REG
ISTE
R S.
A.3.
TRI
UM
F G
ROU
P S.
A.
Exec
utiv
e D
irec
tor
ILEJG
NA aleriM
JAHA
HS notnE SITE
GNARF sirti
miD
Scop
e of
Act
ivit
y D
eale
rCo
rpor
ate
regi
stra
r Tr
easu
ry b
onds
dea
ler
Type
of
Ow
ners
hip
Fore
ign
Stoc
k Co
mpa
ny
Stat
e st
ock
com
pany
D
omes
tic
priv
ate
stoc
k co
mpa
ny
Off
ice
Add
ress
Rr
. “D
ëshm
orët
e 4
Shk
urti
t”,
Tira
na
Rr.
“Pun
ëtor
ët e
Rili
ndje
s”,
Nr.
13,
Tira
na
Rr.
“M.
Gjo
llesh
a”,
Ku
lla 2
, ap
.13,
Tir
ana
Tel.
/Fax
+355
4 2
6961
6, +
355
4 26
9707
+3
55 4
233
442,
+35
5 4
2334
25
+355
68
2058
275
/ +3
55 4
256
081
Web
page
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ww
w
E-m
ail
ten.knabanarit@ofni
Lice
nse
Issu
ance
Dat
e 3002.11.42
2002.11.50 2002.11.50
Lice
nse
Expi
rati
on D
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
4. B
ALLK
AN G
ROU
P-01
S.A
.5.
PO
PULA
R BA
NK
S.A.
6. T
IRAN
A ST
OCK
EXH
ANG
E S.
A.
Exec
utiv
e D
irec
tor
JARERUF alinA
AVO
HOBIL nivdE
JAMAR icne
G
Scop
e of
Act
ivit
y Se
curi
ties
org
aniz
ed t
rade
D
eale
rG
over
nmen
t bo
nds
deal
er
Type
of
Ow
ners
hip
Dom
esti
c pr
ivat
e st
ock
com
pany
D
omes
tic
priv
ate
stoc
k co
mpa
ny
Stat
e st
ock
com
pany
Off
ice
Add
ress
Rr
. “R
eshi
t Ço
llaku
”, P
all.
7-k
atës
h
tek
Shal
lvar
et,
shk.
2/6.
Tir
ana
Rr.
“Don
ika
Kast
riot
i”,
N
r.11
/1,
Tira
na
Rr.
“Dor
a D
’Ist
ria”
, N
r.2,
P.
O.B
. 27
4/1,
Tir
ana
Tel.
/Fax
+355
4 2
3353
7, +
355
4 23
3537
+3
55 4
272
790/
1, +
355
4 27
2781
+3
55 4
265
058
Web
page
la.
moc.est.w
ww
moc.erollupopb.
ww
w
E-m
ail
moc.la-
mocba@ofniest
moc.erollupopb
@ofni
Lice
nse
Issu
ance
Dat
e 01
Jul
y 20
0523
Mar
ch 2
005
24.1
1.20
03
Lice
nse
Expi
rati
on D
ate
01 J
uly
2007
No
expi
rati
on d
ate
No
expi
rati
on d
ate
7. R
AIFF
EISE
N B
ANK
S.A.
8. A
MER
ICAN
BAN
K O
F AL
BAN
IA S
.A.
9. N
ATIO
NAL
CO
MM
ERCI
AL
BAN
K S.
A.
Dre
jtor
Ekz
ekut
iv
OR ocneroL
DURE
NUR
G nevetS LI
GILPACNEP nahyeS
IRACN
Scop
e of
Act
ivit
y D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
Type
of
Ow
ners
hip
Fore
ign
stoc
k co
mpa
ny
Fore
ign
stoc
k co
mpa
ny
Fore
ign
stoc
k co
mpa
ny
Off
ice
Add
ress
Eu
rope
an T
rade
Cen
ter,
Bu
l. “
Bajr
am C
urri
”, T
iran
a Rr
. “I
smai
l Qem
ali”
, N
r. 2
7, T
iran
a Bu
l. “
Zhan
D’a
rk”,
Tir
ana
Tel.
/Fax
+355
4 2
2454
0, +
355
4 23
0013
+3
55 4
248
753/
4/5/
6/7,
+35
5 4
2201
60
+355
4 2
5095
5, +
355
4 25
0956
Web
page
la.
moc.tkb.w
ww
moc.blaknab
ma.w
ww
la.nesieffiar.w
ww
E-m
ail
c.blaknabma
@knabnacirema
om
in
fo@
bkt.
com
.al
Lice
nse
Issu
ance
Dat
e 5002.21.12
5002.11.42 5002.90.82
Lice
nse
Expi
rati
on D
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
10.
ALPH
A BA
NK
- Ti
rana
S.A
.11
. CR
EDIN
S BA
NK
S.A.
12.
ITAL
IAN
-ALB
ANIA
N B
ANK
S.A.
Dre
jtor
Ekz
ekut
iv
AU
QSAPARTSAM igiuL
OT
NAS natrA SAL
UOTALA
G saerdnA
Scop
e of
Act
ivit
y Tr
easu
ry b
onds
Dea
ler
and
Regi
stra
r Tr
easu
ry b
onds
Dea
ler
and
Regi
stra
r Tr
easu
ry b
onds
dea
ler
Type
of
Ow
ners
hip
Fore
ign
stoc
k co
mpa
nyFo
reig
n st
ock
com
pany
Dom
esti
c pr
ivat
e st
ock
com
pany
Off
ice
Add
ress
Bu
l. “
Zogu
I”,
Nr.
47/
1, T
iran
a Rr
.”Is
mai
l Qem
ali”
, N
r. 2
1, T
iran
a Rr
. “B
arri
kada
ve”,
Nr.
1, T
iran
a
Tel.
/Fax
+355
4 2
40 4
78,
+355
4 2
3210
2 +3
55 4
234
096,
+35
5 4
2587
52
+355
4 2
3396
6, +
355
4 23
5700
Web
page
la.
moc.aib.w
ww
moc.snidercaknab.
ww
w
E-m
ail
la.moc.aib
@aitaib
moc.snidercaknab@ofni
Lice
nse
Issu
ance
Dat
e 08
May
200
60
6002.20.31
Lice
nse
Expi
rati
on D
ate
08 M
ay 2
007
No
expi
rati
on d
ate
No
expi
rati
on d
ate
A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y 61
Insu
ranc
e M
arke
t
1. IN
SIG
S.A
2. S
IGM
A S.
A
3. S
IGAL
S.A
4.
ATL
ANTI
K S
.A
Exec
utiv
e D
irec
tor
Saim
ir Z
EMBL
AKU
Q
emal
DIS
HA
Avni
PO
NAR
I D
rita
n ÇE
LAJ
Scop
e of
Act
ivit
y Li
fe +
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Non
-Lif
e In
sura
nce
Type
of
Ow
ners
hip
Stat
e +
fore
ign
stoc
k co
mpa
ny
Dom
esti
c st
ock
com
pany
D
omes
tic
and
fore
ign
stoc
k co
mpa
ny
Shoq
ëri m
e ka
pita
l ven
das
Off
ice
Add
ress
Rr
. “D
ibrë
s” N
r. 9
1, T
iran
a Rr
“A
. Fr
ashë
ri”,
sh
eshi
Will
son,
P.
O.B
. N
o. 1
714,
Tir
ana
Bul.
“Zo
gu I”
, N
r.1
, P.
O.B
. N
o.23
87,
Tira
naRr
. “T
hem
isto
kli G
ërm
enji
”,
3/1,
Tir
ana
Tel.
/Fax
+355
4 2
34 1
70
+355
4 2
58 2
54,
+355
4 2
5825
3 +3
55 4
250
220
+3
55 4
230
506
,+3
55 4
235
088
Web
page
w
ww
.ins
ig.c
om.a
l w
ww
.sig
ma-
insu
ranc
e.co
m
ww
w.s
igal
.com
.al
ww
w.a
tlan
tik.
com
.al
E-m
ail
info
@in
sig.
com
si
gma_
sha@
insu
rer.
com
in
fo@
siga
l.co
m.a
l at
lant
ik@
atla
ntik
.com
.al
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 0
3 an
d 04
, da
te.
08 J
une
2000
Dec
isio
n N
o. 0
1,
date
03
Mar
ch 1
999
Dec
isio
n N
o. 0
2,
date
. 23
Jun
e 19
99D
ecis
ion
No.
5,
date
. 13
Apr
il 20
01
5. IN
TERS
IG S
.A
6.
ALB
SIG
S.A
7.
INTE
RALB
ANIA
N S
.A
8. E
URO
SIG
S.A
Exec
utiv
e D
irec
tor
Vang
jel B
IRBO
G
ezim
HU
QI
Bard
hyl M
INXH
OZI
M
ysly
m N
ELA
Scop
e of
Act
ivit
y N
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
eN
on-L
ife
Insu
ranc
e
Type
of
Ow
ners
hip
Nat
iona
l sto
ck c
ompa
nyN
atio
nal s
tock
com
pany
Nat
iona
l sto
ck c
ompa
nyN
atio
nal s
tock
com
pany
Off
ice
Add
ress
Rr
. “B
arri
kada
ve”
Pall.
122
, Ap
1/1,
Tir
ana
Rr.,
”Pun
ëtor
et e
Rili
ndje
s”,
Nr.
10,
Tira
na
Zaye
d Bu
sine
ss C
ente
r,
Kuti
a Po
star
e N
r.27
7/1,
Tir
ana
Rr “
Lek
Duk
agji
ni”,
N
r. 5
, Ti
rana
Tel.
/Fax
+355
4 2
3561
4,+
355
4 23
2462
+3
55 4
254
761
,+3
55 4
254
764
+355
4 2
29 5
51,
+355
4 2
2957
8 +3
55 4
238
899
,+3
55 4
223
841
Web
page
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ww
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moc.nainablaretni.w
ww
la.moc.gisbla.
ww
w
E-m
ail
inte
rsig
@al
bani
aonl
ine.
net
info
@al
bsig
.com
.al
ttro
qe@
inte
ralb
ania
n.co
in
fo@
euro
sig.
al
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 6
, da
te 1
3 Se
ptem
ber
2001
Cour
t D
ecis
ion
No.
307
56
date
09
Sept
embe
r 20
04
Dec
ison
No.
9,
date
19
July
200
420
Sep
tem
ber
2004
9. S
ICRE
D S
.A
10.
SIG
AL-L
IFE
S.A
Exec
utiv
e D
irec
tor
JAHX
OH nivdE
JAHX
OK cneG
Scop
e of
Act
ivit
y Li
fe In
sura
nce
Life
Insu
ranc
e
Type
of
Ow
ners
hip
Nat
iona
l sto
ck c
ompa
nyN
atio
nal a
nd f
orei
gn
stoc
k co
mpa
ny
Off
ice
Add
ress
Rr
. “S
ami F
rash
ëri”
,
Pall.
20,
Tir
ana
Bul.
“Zo
gu I”
,
Pall.
Dip
lom
atëv
e.
Nr
57,
Tira
na
Tel.
/Fax
803 332 4 553+ 945 732 4 553+
Web
page
la.
moc.lagis.w
ww
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ail
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moc.dercis@tcatnoc
Dat
e of
Sta
rtin
g A
ctiv
ity
Dec
isio
n N
o. 9
, da
te 2
6 Ju
ly 2
004
01 M
arch
200
5
Secu
riti
es M
arke
t
1. T
IRAN
A BA
NK
S.A.
2. A
LBAN
IAN
SH
ARE
REG
ISTE
R S.
A.3.
TRI
UM
F G
ROU
P S.
A.
Exec
utiv
e D
irec
tor
ILEJG
NA aleriM
JAHA
HS notnE SITE
GNARF sirti
miD
Scop
e of
Act
ivit
y D
eale
rCo
rpor
ate
regi
stra
r Tr
easu
ry b
onds
dea
ler
Type
of
Ow
ners
hip
Fore
ign
Stoc
k Co
mpa
ny
Stat
e st
ock
com
pany
D
omes
tic
priv
ate
stoc
k co
mpa
ny
Off
ice
Add
ress
Rr
. “D
ëshm
orët
e 4
Shk
urti
t”,
Tira
na
Rr.
“Pun
ëtor
ët e
Rili
ndje
s”,
Nr.
13,
Tira
na
Rr.
“M.
Gjo
llesh
a”,
Ku
lla 2
, ap
.13,
Tir
ana
Tel.
/Fax
+355
4 2
6961
6, +
355
4 26
9707
+3
55 4
233
442,
+35
5 4
2334
25
+355
68
2058
275
/ +3
55 4
256
081
Web
page
la.knabanarit.
ww
w
E-m
ail
ten.knabanarit@ofni
Lice
nse
Issu
ance
Dat
e 3002.11.42
2002.11.50 2002.11.50
Lice
nse
Expi
rati
on D
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
4. B
ALLK
AN G
ROU
P-01
S.A
.5.
PO
PULA
R BA
NK
S.A.
6. T
IRAN
A ST
OCK
EXH
ANG
E S.
A.
Exec
utiv
e D
irec
tor
JARERUF alinA
AVO
HOBIL nivdE
JAMAR icne
G
Scop
e of
Act
ivit
y Se
curi
ties
org
aniz
ed t
rade
D
eale
rG
over
nmen
t bo
nds
deal
er
Type
of
Ow
ners
hip
Dom
esti
c pr
ivat
e st
ock
com
pany
D
omes
tic
priv
ate
stoc
k co
mpa
ny
Stat
e st
ock
com
pany
Off
ice
Add
ress
Rr
. “R
eshi
t Ço
llaku
”, P
all.
7-k
atës
h
tek
Shal
lvar
et,
shk.
2/6.
Tir
ana
Rr.
“Don
ika
Kast
riot
i”,
N
r.11
/1,
Tira
na
Rr.
“Dor
a D
’Ist
ria”
, N
r.2,
P.
O.B
. 27
4/1,
Tir
ana
Tel.
/Fax
+355
4 2
3353
7, +
355
4 23
3537
+3
55 4
272
790/
1, +
355
4 27
2781
+3
55 4
265
058
Web
page
la.
moc.est.w
ww
moc.erollupopb.
ww
w
E-m
ail
moc.la-
mocba@ofniest
moc.erollupopb
@ofni
Lice
nse
Issu
ance
Dat
e 01
Jul
y 20
0523
Mar
ch 2
005
24.1
1.20
03
Lice
nse
Expi
rati
on D
ate
01 J
uly
2007
No
expi
rati
on d
ate
No
expi
rati
on d
ate
7. R
AIFF
EISE
N B
ANK
S.A.
8. A
MER
ICAN
BAN
K O
F AL
BAN
IA S
.A.
9. N
ATIO
NAL
CO
MM
ERCI
AL
BAN
K S.
A.
Dre
jtor
Ekz
ekut
iv
OR ocneroL
DURE
NUR
G nevetS LI
GILPACNEP nahyeS
IRACN
Scop
e of
Act
ivit
y D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
D
eale
r an
d Re
gist
rar
of
Gov
ernm
ent
bond
s in
Alb
ania
Type
of
Ow
ners
hip
Fore
ign
stoc
k co
mpa
ny
Fore
ign
stoc
k co
mpa
ny
Fore
ign
stoc
k co
mpa
ny
Off
ice
Add
ress
Eu
rope
an T
rade
Cen
ter,
Bu
l. “
Bajr
am C
urri
”, T
iran
a Rr
. “I
smai
l Qem
ali”
, N
r. 2
7, T
iran
a Bu
l. “
Zhan
D’a
rk”,
Tir
ana
Tel.
/Fax
+355
4 2
2454
0, +
355
4 23
0013
+3
55 4
248
753/
4/5/
6/7,
+35
5 4
2201
60
+355
4 2
5095
5, +
355
4 25
0956
Web
page
la.
moc.tkb.w
ww
moc.blaknab
ma.w
ww
la.nesieffiar.w
ww
E-m
ail
c.blaknabma
@knabnacirema
om
in
fo@
bkt.
com
.al
Lice
nse
Issu
ance
Dat
e 5002.21.12
5002.11.42 5002.90.82
Lice
nse
Expi
rati
on D
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
No
expi
rati
on d
ate
10.
ALPH
A BA
NK
- Ti
rana
S.A
.11
. CR
EDIN
S BA
NK
S.A.
12.
ITAL
IAN
-ALB
ANIA
N B
ANK
S.A.
Dre
jtor
Ekz
ekut
iv
AU
QSAPARTSAM igiuL
OT
NAS natrA SAL
UOTALA
G saerdnA
Scop
e of
Act
ivit
y Tr
easu
ry b
onds
Dea
ler
and
Regi
stra
r Tr
easu
ry b
onds
Dea
ler
and
Regi
stra
r Tr
easu
ry b
onds
dea
ler
Type
of
Ow
ners
hip
Fore
ign
stoc
k co
mpa
nyFo
reig
n st
ock
com
pany
Dom
esti
c pr
ivat
e st
ock
com
pany
Off
ice
Add
ress
Bu
l. “
Zogu
I”,
Nr.
47/
1, T
iran
a Rr
.”Is
mai
l Qem
ali”
, N
r. 2
1, T
iran
a Rr
. “B
arri
kada
ve”,
Nr.
1, T
iran
a
Tel.
/Fax
+355
4 2
40 4
78,
+355
4 2
3210
2 +3
55 4
234
096,
+35
5 4
2587
52
+355
4 2
3396
6, +
355
4 23
5700
Web
page
la.
moc.aib.w
ww
moc.snidercaknab.
ww
w
E-m
ail
la.moc.aib
@aitaib
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Lice
nse
Issu
ance
Dat
e 08
May
200
60
6002.20.31
Lice
nse
Expi
rati
on D
ate
08 M
ay 2
007
No
expi
rati
on d
ate
No
expi
rati
on d
ate
Supp
lem
enta
ry P
ensi
ons
Priv
ate
Fund
s
1. A
mer
ican
Pen
sion
Fu
nd o
f Al
bani
a2.
Pri
vate
Pen
sion
s In
stit
utio
n G
ARAN
TSIG
3.
Pri
vate
Pen
sion
s In
stit
utio
n CA
PITA
L
Exec
utiv
e D
irec
tor
IMA
HDA ilkotsi
mehT IL
OL oçiK AJARK najrA
Scop
e of
Act
ivit
y Su
pple
men
tary
Pen
sion
s Pr
ivat
e Fu
nd
Supp
lem
enta
ry P
ensi
ons
Priv
ate
Fund
Supp
lem
enta
ry P
ensi
ons
Priv
ate
Fund
Type
of
Ow
ners
hip
Dom
esti
c pr
ivat
e st
ock
com
pany
+ f
orei
gn s
tock
D
omes
tic
priv
ate
stoc
k co
mpa
nyD
omes
tic
priv
ate
stoc
k co
mpa
ny
Off
ice
Add
ress
Rr
. “M
usta
fa M
atoh
iti”
,
P.11
kat
ësh,
kat
i 2,
zyra
1,
Tira
naSh
eshi
Ske
nder
bej,
Hot
el “
Tira
na
Inte
rnat
iona
l”,
Kati
14,
Tir
ana
Rr.
“Der
vish
Him
a”,
Nr.
2/1,
Tir
ana
Tel.
/Fax
300 363 4 553 + ,000 843 4 553 + 440 562 4 553 + ,125 562 4 553+
8/702 042 4 553 +
Web
page
la.
moc.latipac.w
ww
moc.la-gistnarag.
ww
w la.
moc.afpa.w
ww
E-m
ail
iba@la-gistnarag
la.moc.afpa
@ofnisn
et.c
om
cont
act@
capi
tal.
com
.al
Dat
e of
St
arti
ng A
ctiv
ity
01 M
arch
200
601
Jan
uary
200
601
Jan
uary
200
6
A N N U A L R E P O R T ‘ 0 662
APPENDIX D: Statistical TablesM
ain
Mac
ro-E
con
omic
In
dic
ator
s 19
96 -
20
06
Gen
eral
In
dica
tors
M
easu
ring
Uni
t19
96
1997
19
98
1999
20
00
2001
20
02
2003
20
04
2005
20
06
Popu
lati
on00
0 3.
076
3.07
5 3.
055
3.05
4 3.
061
3.07
4 3.
094
3.11
1 3.
127
3.14
2 3.
159
Tota
l num
ber
of e
mpl
oyee
s
000
1.11
6 1.
107
1.08
5 1.
065
1.06
8 92
1 92
1 92
7 93
1 93
2 93
4
Regi
ster
ed u
nem
pl.
pers
ons
000
158
194
235
240
215
181
173
164
157
154
150
Une
mpl
oym
ent
%12
,3
14,9
17
,7
18,4
16
,8
16,4
15
,8
15,0
14
,4
14,2
13
,8
Gro
ss D
omes
tic
Prod
uct
(GD
P)
mln
ALL
35
1.11
3 35
3.64
2 41
7.00
9 48
0.58
1 53
2.97
7 59
0.28
2 62
8.52
7 69
4.01
8 75
2.36
7 82
2.03
5 89
9.70
0
incr
ease
(%)
0,7
17,9
15
,2
10,9
10
,8
6,5
10,4
8,
4 9,
3 9,
4
mln
US
$
3.36
0 2.
375
2.76
8 3.
490
3.70
9 4.
114
4.48
5 5.
695
7.32
0 8.
232
9.17
0
incr
ease
(%)
-29,
3 16
,6
26,1
6,
3 10
,9
9,0
27,0
28
,5
12,5
11
,4
mln
Eur
o
3.27
0 4.
020
4.59
5 4.
749
5.04
7 5.
893
6.61
9 7.
310
incr
ease
(%)
22
,9
14,3
3,
3 6,
3 16
,8
12,3
10
,4
Real
GD
P G
row
th%
9,
1 -1
0,9
8,6
13,2
6,
5 7,
1 4,
3 5,
8 6,
2 5,
6 5,
0
ALL
11
4.16
5 11
5.01
3 13
6.48
7 15
7.37
1 17
4.12
4 19
2.04
3 20
3.17
7 22
3.07
1 24
0.60
3 26
1.62
8 28
4.80
5
incr
ease
(%)
0,7
18,7
15
,3
10,6
10
,3
5,8
9,8
7,9
8,7
8,9
US$
1.
092,
5 77
2,3
906,
0 1.
142,
9 1.
211,
6 1.
338,
5 1.
449,
7 1.
830,
6 2.
341,
0 2.
619,
9 2.
903
incr
ease
(%)
-29,
3 17
,3
26,1
6,
0 10
,5
8,3
26,3
27
,9
11,9
10
,8
Euro
1.
070,
8 1.
313,
4 1.
494,
8 1.
535,
0 1.
622,
2 1.
884,
6 2.
106,
7 2.
314,
2
GD
P pe
r ca
pita
incr
ease
(%)
22
,6
13,8
2,
7 5,
7 16
,2
11,8
9,
8
Infl
atio
n
Ann
ual
aver
age
%33
,2
32,1
20
,9
0,4
0,0
3,1
5,2
2,2
2,9
2,4
2,4
E
nd o
f pe
riod
%
17,4
42
,1
8,7
-1,0
4,
2 3,
5 1,
7 3,
3 2,
2 2,
0 2,
5
Gen
eral
Indi
cato
rs
Sour
ce:
Min
istr
y of
Fin
ance
and
INST
AT
63A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y
Indi
cato
rs
Mea
suri
ng U
nit
1996
19
97
1998
19
99
2000
20
01
2002
20
03
2004
20
05
2006
mill
ion
ALL
52
.294
58
.949
10
2.52
4 12
3.16
1 13
0.64
3 14
5.63
9 15
4.59
5 16
7.22
4 18
4.35
6 20
4.16
3 22
6.28
3
incr
ease
(%)
12,
7 73
,9
20,1
6,
1 11
,5
6,1
8,2
10,2
10
,7
10,8
To
tal
Reve
nues
% of
GD
P 14
,9
16,7
24
,6
25,6
24
,5
24,7
24
,6
24,1
24
,5
24,8
25
,2
mill
ion
ALL
45.5
79
72.5
76
83.5
66
104.
112
114.
294
128.
948
145.
388
165.
974
183.
816
205.
514
incr
ease
(%)
5
9,2
15,1
24
,6
9,8
12,8
12
,7
14,2
10
,7
11,8
T
ax R
even
ues
% of
GD
P
12,9
17
,4
17,4
19
,5
19,4
20
,5
20,9
22
,1
22,4
22
,8
mill
ion
ALL
87.5
96
100.
730
141.
628
165.
692
170.
620
186.
049
192.
517
201.
152
222.
439
232.
339
254.
762
incr
ease
(%)
15,0
40
,6
17,0
3,
0 9,
0 3,
5 4,
5 10
,6
4,5
9,7
Tota
l Ex
pend
itur
es
% of
GD
P 24
,9
28,5
34
,0
34,5
32
,0
31,5
30
,6
29,0
29
,6
28,3
28
,3
mill
ion
ALL
13.8
59
24.2
15
34.1
20
36.2
74
43.3
97
37.9
25
31.4
72
38.2
66
38.3
75
47.5
02
incr
ease
(%)
74,7
40
,9
6,3
19,6
-1
2,6
-17,
0 21
,6
0,3
23,8
In
vest
men
ts
% of
GD
P
3,9
5,8
7,1
6,8
7,4
6,0
4,5
5,1
4,7
5,3
mill
ion
ALL
-3
5.30
2 -4
1.78
1 -3
9.10
4 -4
2.53
1 -3
9.97
7 -4
0.41
0 -3
7.92
2 -3
3.92
8 -3
8.08
3 -2
8.17
6 -2
8.47
9 O
vera
ll D
efic
it%
of G
DP
-10,
1 -1
1,8
-9,4
-8
,8
-7,5
-6
,8
-6,0
-4
,9
-5,1
-3
,43
-3,1
7
mill
ion
ALL
82
.785
12
0.52
7 14
9.43
9 17
7.49
0 22
6.06
9 24
1.16
1 26
0.75
2 28
0.76
7 29
5.20
0 32
7.35
3 34
8.93
6 D
omes
tic
Dep
t %
of G
DP
23,6
34
,1
35,8
36
,9
42,4
40
,9
41,5
40
,5
39,2
39
,8
38,8
Mill
ion
$ 32
3,4
347,
5 46
0,5
550,
1 61
7,0
697,
7 97
9,6
1.20
0,4
1.38
9,9
1.35
6,1
1.55
3,3
Fore
ign
Dep
t %
of G
DP
9,6
14,6
16
,6
15,8
16
,6
17,0
21
,8
21,1
19
,0
16,5
16
,9
Sour
ce:
Min
istr
y of
Fin
ance
and
INST
AT
Publ
ic F
inan
ces
Indi
cato
rs
A N N U A L R E P O R T ‘ 0 664
Indi
cato
rs
Mea
suri
ng U
nit
19
96
1997
19
98
1999
20
00
2001
20
02
2003
20
04
2005
20
06
Mill
ion
$ -6
78,3
-5
34,9
-6
03,7
-6
62,8
-8
21,0
-1
.027
,0
-1.1
55,2
-1
.336
,3
-1.5
91,6
-1
.887
,0
-1.9
53,0
Co
mm
erci
al B
alan
ce
% of
GD
P -2
0,2
-22,
5 -2
1,8
-19,
0 -2
2,1
-25,
0 -2
5,8
-23,
5 -2
1,7
-22,
9 -2
1,3
Mill
ion
$ 24
3,7
158,
6 20
8,0
275,
1 25
5,4
304,
6 33
0,2
447,
1 60
3,3
652
721
incr
ease
(%)
19
,0
-34,
9 31
,1
32,3
-7
,2
19,3
8,
4 35
,4
34,9
8,
1 10
,6
Expo
rt
% of
GD
P 7,
3 6,
7 7,
5 7,
9 6,
9 7,
4 7,
4 7,
9 8,
2 7,
9 7,
9
Mill
ion
$ 92
2,0
693,
5 81
1,7
937,
9 1.
076,
4 1.
331,
6 1.
485,
4 1.
783,
4 2.
194,
9 2.
539
2.67
4
incr
ease
(%)
35
,6
-24,
8 17
,0
15,5
14
,8
23,7
11
,6
20,1
23
,1
15,7
5,
3 Im
port
% of
GD
P 27
,4
29,2
29
,3
26,9
29
,0
32,4
33
,1
31,3
30
,0
30,8
29
,2
Mill
ion
$ -6
2,3
-253
,7
-65,
0 -1
32,9
-1
63,1
-2
17,9
-4
20,8
-4
06,7
-3
58,2
-5
76,2
-7
70,3
Cu
rren
t A
ccou
nts
Bala
nce
% of
GD
P -1
,9
-10,
7 -2
,3
-3,8
-4
,4
-5,3
-9
,4
-7,1
-4
,9
-7,0
-8
,4
Mill
ion
$ 90
,1
47,5
45
,0
41,2
14
3,0
207,
3 13
5,0
178,
0 34
1,3
238,
7 29
3,5
Dir
ect
Fore
ign
Inve
stm
ents
%
of G
DP
2,7
2,0
1,6
1,2
3,9
5,0
3,0
3,1
4,7
2,9
3,2
Tran
sfer
M
illio
n $
559,
4 26
4,4
523,
9 35
3,0
533,
0 57
0,5
613,
2 84
2,0
1.10
9,4
1.01
4 1.
065
Rese
rves
M
illio
n $
30
6,0
384,
0 48
2,0
608,
0 75
4,0
860,
0 1.
026,
0 1.
374,
0 1.
390
1.53
6
Rese
rves
M
onth
impo
rts
3,
5 3,
7 3,
8 4,
2 4,
6 4,
4 3,
9 4,
0 4,
1 4,
2
ALL/
Euro
10
4,50
14
8,93
15
0,64
13
7,69
14
3,71
14
3,48
14
0,15
12
1,86
10
2,78
99
,86
98,1
1 Ex
chan
ge r
ate
ALL/
Euro
146,
96
132,
58
128,
47
132,
36
137,
51
127,
67
124,
19
123,
07
Sour
ce:
Min
istr
y of
Fin
ance
and
INST
AT
Sour
ce:
Min
istr
y of
Fin
ance
and
INST
AT
Fore
ign
Trad
e In
dica
tors
Mon
etar
y Ag
greg
ates
Indi
cato
rs
Mea
suri
ng U
nit
19
96
1997
19
98
1999
20
00
2001
20
02
2003
20
04
2005
20
06
mill
ion
ALL
90.4
06
91.6
67
83.7
29
103.
004
124.
041
142.
926
152.
741
144.
730
172.
833
227.
684
227.
500
Agg
rega
te M
1 In
%
1,
4 -8
,7
23,0
20
,4
15,2
6,
9 -5
,2
19,4
31
,7
-0,1
mill
ion
ALL
120.
646
162.
221
199.
264
239.
662
264.
497
305.
302
324.
727
349.
513
391.
411
426.
150
480.
500
Agg
rega
te M
2 In
%
34
,5
22,8
20
,3
10,4
15
,4
6,4
7,6
12,0
8,
9 12
,8
mill
ion
ALL
154.
553
198.
547
239.
526
292.
871
328.
101
394.
316
416.
685
448.
427
507.
206
578.
036
650.
600
Agg
rega
te M
3 In
%
28
,5
20,6
22
,3
12,0
20
,2
5,7
7,6
13,1
14
,0
12,6
65A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y
Progress of Some Important Macroeconomic Indicators (1996-2007)
Gross Domestic Product and Rate of Growth(mio ALL)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
In m
illio
n A
LL
0
5
10
15
20
In %
Gross Domestic Product and Rate of Growth(mio Euro)
01,0002,0003,0004,0005,0006,0007,0008,0009,000
1999
2000
2001
2002
2003
2004
2005
2006
2007
In m
illiio
n Eu
ro0
5
10
15
20
25
In %
Inflation
-10
0
10
20
30
40
50
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
In %
Yearly Average End of period
Investments
010,00020,00030,00040,00050,00060,00070,00080,000
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
In m
illio
n A
LL
012345678
In %
mio ALL as % to GDP
Public Debt as % to GDP
38.138.839.840.5 39.241.540.942.4
36.9
20.21816.5
1921.121.8
16.6 17
15.810
15
20
25
30
35
40
45
1999 2000 2001 2002 2003 2004 2005 2006* 2007**
Internal Debt Foreign Debt
Yield T-Bills Primary Market
0%5%
10%15%20%25%30%35%40%
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
TB 3-months TB 6-months TB 12-months
2006 3-month Treasury Bonds
Month Deposits Interest
TB Yield
Inflation Rate
January 4,33% 5,36% 1,38% February 4,28% 5,14% 1,35% March 3,96% 5,13% 1,50% April 3,95% 5,04% 2,37% May 3,85% 5,07% 3,08% June 3,74% 5,13% 2,43% July 3,62% 5,19% 3,25% August 3,66% 5,34% 2,82% September 3,65% 5,69% 2,55% October 3,85% 5,17% 2,25% November 3,86% 6,23% 2,91% December 3,94% 6,38% 2,51%
3 Months T-Bills
0,00%
1,00%
2,00%
3,00%
4,00%
5,00%
6,00%
7,00%
Jan.
Feb.
Mar.
Apr.
MayJu
ne July
Aug.
Sep.
Oct.
Nov.
Dec.
Months
%
Deposit Rates Yield Inflation Rate
A N N U A L R E P O R T ‘ 0 666
2006 6-month Treasury Bonds
Months Deposits Interest
TBYield
InflationRate
Months Deposits Interest
TBYield
InflationRate
January 4,95% 6,72% 1,38% February 4,71% 6,33% 1,35% March 4,80% 5,95% 1,50% April 4,60% 5,62% 2,37% May 4,46% 5,48% 3,08% June 4,35% 5,43% 2,43% July 4,23% 5,49% 3,25% August 4,26% 5,72% 2,82% September 4,31% 6,24% 2,55% October 4,50% 6,68% 2,25% November 4,51% 6,86% 2,91% December
JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
4,64% 7,06% 2,51%
2006 12-month Treasury Bonds
4,95% 6,72% 1,38% 4,71% 6,33% 1,35% 4,80% 5,95% 1,50% 4,60% 5,62% 2,37% 4,46% 5,48% 3,08% 4,35% 5,43% 2,43% 4,23% 5,49% 3,25% 4,26% 5,72% 2,82% 4,31% 6,24% 2,55% 4,50% 6,68% 2,25% 4,51% 6,86% 2,91% 4,64% 7,06% 2,51%
6 Month T-Bills
0,00%1,00%2,00%3,00%4,00%5,00%6,00%7,00%8,00%
Jan.
Feb.
Mar.
Apr.
MayJu
ne July
Aug.
Sept
.Oct
.No
v.De
c.
Jan.
Feb.
Mar.
Apr.
MayJu
ne July
Aug.
Sept
.Oct
.No
v.De
c.
Months%
Deposit Rates Yield Inflation Rate
Deposit Rates Yield Inflation Rate
12 Month T-Bills
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
Months
%
67A L B A N I A N F I N A N C I A L S U P E R V I S O R Y A U T H O R I T Y