RESTRICTED
WORLD TRADE WT/ACC/ALB/8/Add.5
14October 1996
ORGANIZATION(96-4233)
Original: English
ACCESSION OFALBANIA
Additional Questions andReplies
Addendum
Thefollowing additional questions andreplies, totheMemorandum ontheForeign Trade
Régime (document L/7613) andtotheearlier Replies toQuestions (documents WT/ACC/ALB/3 and
WT/ACC/ALB/4), related toservices (GATS), havebeenreceived from theMinistry ofIndustry,
Transport andTrade oftheRepublic ofAlbania.
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QUESTIONS RELATING TOSERVICES (GATS)
Banking andother financial services (excluding insurance)
Question 1
Canyouconfirm thatforeign banks canestablish acommercial presence inAlbania intheform
ofeither asubsidiary, abranch orarepresentatives office without anylimitations ontheforeign
capital participation (including wholly foreign-owned banks)?
Answer.
According totheLawOntheBanking System, aforeign bankcanestablish apresence inthe
form ofasubsidiary, abranch orarepresentatives office. Foreign banks canbefounded without
limitations oftheforeign capital participation, including wholly foreign-owned banks.
Question 2
Canyouconfirm thattheconditions andcriteria applied toforeign banks forobtaining alicence
inAlbania arepurely prudential andnon-discriminatory anddonotinvolve anymarket access
(Article XVIGATS) limitation?
Answer.
Theconditions andcriteria applied toforeign banks forobtaining alicence inAlbania arepurely
prudential anddonotinvolve anymarket access limitations. These conditions andcriteria arealso
non-discriminatory withtheexception oftheminimum capital requirement forforeign banks which
isslightly higher thanthatrequired fordomestic banks. (Seealsoprevious answers onthissubject.)
./.WT/ACC/ALB/8/Add.5
Page2
Question 3
Arethere anyrestrictions onforeign capital participation inexisting domestic banks?
Answer.
There arenorestrictions onforeign capital participation inexisting private domestic banks.
Theconditions forforeign participation indomestic Statebanks which willbeprivatized havenotyet
beendetermined.
Insurance services
Question 4
Does Albania envisage anymeasure toendtheState monopoly ininsurance services? Could you
describe thepresent situation intheinsurance market?
Answer.
Thefirststepforthatisthetransformation ofINSIG intoacommercial enterprise. Itisforeseen
thatthistransformation willtakeplace inthefirsthalfof1997. After thattheprocess ofprivatization
willcontinue, inconformity withthestrategy oftheGovernment ofAlbania forprivatization ofbig
enterprises. TheLawfortheactivities ofinsurance andreinsurance, which determines theprinciples
andregulations which areapplied fordirect insurance, reinsurance andgovernment surveyor forthe
enterprises andother juridical entities which carry outinsurance and/or reinsurance activities. Acopy
ofthislawinanofficial WTO language hasbeensenttotheWorking Party. Adetailed summary
ofthelawisprovided intheNote onServices Schedule.