Islamic Banks quadruplicate funds

11/07/2011 08:00

It was June 1993 when Kuwait released the first check of 2.7 million USD
for improving the Albanian transport sector. At that time, the Albanian government was in
need of financial support, due to the strong economic and political
changes. After two years, on March 1995, there were two other Arab partners added to
our country, with 6 million USD from OPEC for improving
the irrigation systems in the agriculture sector. And on May of the same
year, the Islamic Development Bank built the Durres hospital.

Albania’s full membership in the Islamic Conference gave an opportunity to our country to strengthen the ties with the Arab world, benefiting soft loans and commercial funds. A great part of these funds were given as grants and have been used for the transportation and irrigation sectors.

The record books of the Finance Ministry show that by the end of 2006, Albania had received 95 million EUR from the Arab banks. This money is small compared to loans from other institutions, but it has essentially grown through time. According to “Shqip” newspaper, these banks, mainly IDB and OPEC, grew Albania’s debt with 81 million EUR. If we calculate the latest 250 million EUR for the Tirana-Elbasan highway, from 2006 to 2011, the financing of the Arab institutions has been quadrupled.

Besides the fact that we are full members of the Islamic Conference, Albania also owns 0.5% of shares in the Islamic Development Bank. This has eventually increased the possibility for loans, keeping in mind the fact that Albania has strengthened the political and economical relations with the main shareholder of this bank, Saudit Arabia.

The loans from Arab institutions make 15% of the total loans that Albania has taken from different world countries (a total of 422 million EUR). The Finance Ministry declared that they are waiting other funds, since there are favorable conditions.

The Islamic Banks and Institutions have financed different projects in transportation, irrigation, drinking water and health system.

The Kuwait Fund, together with the Saudi Fund financed the Durres Bypass. OPEC has contributed with a total of 11 million EUR in the construction of secondary roads, for projects regarding constant rural development and the Milot-Rrëshen highway, part of the Durres-Kukes project.

IDB, which has given more than 45% of the total financing from Arab partners has financed the reconstruction of Vore-Rinas-Fushe Kruje, the construction of Durres Fishing Port, Kalimash-Rexhepaj road, part of the Durres-Kukes road and for regional hospitals in Durres and Kavaja.

Top Channel