The Ministry of Finance launches the Corporate Financial Reporting Enhancement Project

April 13, 2011

The Ministry of Finance, The World Bank and SECO (Swiss State Secretariat for Economic Afairs) are working together in Albania to create a transparent policy environment and effective institutional framework for corporate financial reporting in line with good international practices, aligned with EU acquis communautaire.  Better financial reporting contributes to foreign direct and portfolio investment, foster private and financial sector developments, and facilitates integration into the European Union market.

For this purpose the Ministry of Finance officially launched the Corporate Financial Reporting Enhancement Project (CFREP) on April 13, 2011. The audience comprised of project beneficiaries and other stakeholders involved in corporate financial reporting reforms attended this event. This project intends to materialize on the prospective activities put forward in the Strategy and Action Plan of the Albanian Government for the Financial Reporting Reform. CFREP is implemented by the Ministry of Finance.  The project is funded under WB administered multi-donor trust fund, with a contribution of EUR 1.25 mln from SECO. The activities under this project are combined and benefit from the regional activities of REPARIS (Road to Europe: Program of Accounting Reform and Institutional Strengthening - where Albania is an important participant. REPARIS is regional program implemented by the World Bank’s Center for Financial Reporting Reform in Vienna, and funded by the Governments of Austria and Luxemburg.

According to the Deputy Minister of Finance, Mr. Nezir Haldeda: “The government of Albania and the Ministry of Finance are committed to reforms in order to enhance Albania’s legal framework, institutions, and accounting profession, as well as its accounting, auditing and business culture… reform will come only if we start from ourselves and are convinced that the only way to improve financial reporting in the country is substantial and true reforming.”

The World Bank Acting Country Manager for Albania, Mrs. Greta Minxhozi, expressed the World Bank’ support for the development of a transparent and stimulating business enabling environment. In this framework it has closely cooperated with the Ministry of Finance in designing the CFREP project and will continue the cooperation in the future with this regard.

The Swiss Ambasador, H.E. Yvana Enzler greeted the efforts of the Albanian Government and mentioned that the Swiss Government is an important contributor of donor funding for projects aiming the improving the economic environment and development, such as the corporate governance project implemented through IFC, and especially the CFREP project that was launched in this event.

The World Bank experts, Mr. Andrei Busuoic and Mrs. Antonia Viyachka made a general presentation of the project as well as implementation and administrative related arrangements.

The CFREP expected results are:

  1. Improve legitimacy of the legal framework in the area of corporate financial reporting by aligning it with  the EU acquis communautaire;
  2. Strengthen standard setting by the National Accounting Council (NAC);
  3. Improve standard setting and supervision of auditing practices by the audit oversight system;
  4. Improve skills for compliance with new professional standards through revisions and updates of accounting and auditing curricula for university education and professional certification; and
  5. Improve management of reforms in corporate financial reporting by the National Steering Committee and the MoF.

The National Steering Committee of the national financial reform will have an oversight role on the project, while beneficiaries include the Ministry of Finance, the National Accounting Council, The Public Oversight Board, Proffessional Asociations and Universities.