Credins Bank and American Bank of Investment (ABI Bank) have been officially licensed by the Albanian Financial Supervisory Authority (AFSA) to trade securities of private companies in addition to Government Securities. By a decision on December 19th 2019, the AFSA Board approved the extension of the brokerage license for these two institutions to provide securities trading activity in both, the Albanian Securities Exchange and retail market as well in the Republic of Albania.
Previously, the brokerage license was limited on trading Government securities. Once the green light for trading securities of private companies on ALSE is opened, Credins Bank and ABI Bank are now in possession of the license as brokers for companies that would be interested in trading their bonds or shares on the stock exchange.
After ALREG (the new financial institution to operate as CSD) received all the necessary licenses from at the end of last year, it is no longer legally prohibited for Albanian companies to enter the securities market, either to raise capital through the sale of shares or borrowing through debt securities.
The listing of private companies into the stock exchange would mark a historic development, not only for the financial market, but for the entire Albanian economy. In recent years, some companies, mainly financial institutions, started rising capital by borrowing through private placement process.
Meanwhile, there is still hope that the stock exchange can get a boost from public companies. In 2018, the Prime Minister Rama announced the intention of Government to list Albanian Electricity Distribution Operator (OSHEE) on stock exchange, but this process is linked to the separation of this operator into some different companies, which has been a slow process so far.