The Minister of Finance and the Ambassador of Switzerland sign a cooperation agreement in support of the local financial system

Mr. Petrit Malaj, Minister of Finance, and Mrs. Ruth Huber, Ambassador of Switzerland to Albania, signed an agreement for further technical support in our country’s local financial system.

The agreement supports the second phase of the project “Providing technical assistance for strengthening public finance management at the local level in Albania” and foresees a fund of 4.5 million euros for the period 2024-2028, aimed at continuing the implementation of this project.

Minister Malaj considered the signing of the agreement a step forward in advancing bilateral economic relations with the Government of the Swiss Confederation.

Mr. Malaj expressed his belief that its implementation will help the Albanian government continue ensuring: increased efficiency in collecting revenues from local taxes and fees; the reform of the local budget, making it more efficient and transparent; as well as better control over auditing and financial reporting.

The Minister of Finance emphasized the fact that currently, municipalities are better structured in terms of expenditures, as most of the budget goes towards public services and investments. Meanwhile, the government has recently raised salaries for the local administration as part of a commitment to even broader reform.

“The contribution of our partners is important to us, especially in the implementation of a major reform such as the decentralization and empowerment of local governance, which is one of our priorities, as it ensures the improvement of services and the lives of citizens,” stated Mr. Malaj.

The first phase of the project implementation supported municipalities in several aspects, while the second phase aims at: improving strategic planning and overall management; strengthening local revenue management systems to increase them and contribute to the growth of municipalities’ own revenues; and establishing effective systems for auditing and financial reporting. These objectives, said the Minister, are fully in line with the government’s priorities for the modernization of public finances at the local level and for enhancing the consolidation of financial autonomy.

For her part, Swiss Ambassador Ruth Huber emphasized that the signed agreement formalizes the continuation of joint work to improve the quality of public finances.

“The goal is to improve the management of public finances, to use public resources more efficiently, and ultimately, to provide better services for local communities,” said Ambassador Huber.

The local finance project supports 61 municipalities in enhancing their capacities for managing finances by introducing more efficient instruments and methods in this area. Additionally, the project works with the Ministry of Finance, the Department for Local Finances, and other directorates to ensure better coordination and monitoring of local finances. Funding for the project comes from the State Secretariat for Economic Affairs of Switzerland (SECO).