Albania - Methods of PaymentAlbania - Methods of Payment
Trade financing options for imports to Albania have improved in recent years as the banking sector has further developed. The most commonly used international payment mechanisms to facilitate transactions include letters of guarantee and letters of credit, which are available through local banks.
Bank-to-bank trade financing alternatives can be structured with or without a letter of credit. Many importers regularly receive goods under a short-term supplier credit agreement. Importers are free to arrange payments through long-term supplier loans when making larger purchases. For transactions abroad, the most preferred forms of payment are letters of credit or payments in advance. The U.S. Export-Import Bank (Ex-Im) provides insurance policies to U.S. exporters to allow more flexible payment terms.
In August 2018, S&P affirmed Albania’s rating at B+/B with a stable outlook, while in September 2018, Moody’s maintained its rating for Albania’s government debt obligations at B1 with a stable outlook. Collection agencies have been established in recent years, including Tranzit Finance, a non-banking financial institution controlled by U.S.-based NCH Capital.