Albanian experts worry about capital outflow

Albanian experts say the increased number of loans given by Albanian banks to businesses outside the country is not good for the domestic economy, although it may bring profits to the banks, Albanian Daily News reported on Monday.

"The situation is paradoxical. We have no funds, no money. Not only the ordinary people, but also the banks. For one reason or another, not enough is generated within the economy. It is clear that something is not working," said finance expert Elvin Meka.

In the past one year the Albanian Banks have given 28 billion lek (224 million U.S. dollars) of loans outside Albania. For finance expert Arjan Kadare, the capital outflow is related to the banks' pessimistic expectancies for the future of the country.

"As banks are taking measures to invest abroad, it shows they don't foresee any improvement of the situation," said Kadare, a former member of the supervisory council with the Bank of Albania. Endi