Krszysztof Grabowski spoke about the purpose of his mission to Albania in an interview for Ora TV News.

Q: Mr. Grabowski, can you please explain to us why you are here in Albania?
A: Some months ago, I was approached to work with USAID, through FSVC, to help developing countries like Albania with improving its financial sector, specifically addressing the question of creating capital market, stock exchange in Albania. I was approached by FSVC because I had contact with it before. Several years ago it was the FSVC mission in Poland that helped us in developing the Polish market and now I am here to share Poland’s experience in creating market, and to help you create a sound stock exchange here in Albania.

Q: Do you think Albania is ready to create a capital market?
A: I’ve been here for two weeks. All the meetings I have had here have assured me that it’s the right moment to work on creating a very good and effective stock exchange.

Q: Do you think Albania’s businesses are ready to enter the capital market?
A: I think so. Maybe not so many companies in the beginning, which is natural in every country, but I had several talks and meetings and I am pretty sure that at least five or ten companies are ready to be listed on the stock exchange.

Q: What will it take for the stock exchange to get up and running?
A: First, it’s necessary to create some regulations, because there is a new Securities Law in Albania. But it’s very broad, so it’s necessary to write and create more detailed regulations which will help create a stock exchange that will provide guidelines as to how to conduct safe and effective business, how to attract companies to be listed, how to attract investors to be active on the stock exchange, and how to devise transparent rules for investors safeguarding investor protection. Also very important, especially in a growing market, is to create a market that is safe right from the beginning and protects the rights of the shareholders.

Q: How long will this process take?
A: It is difficult to say. Normally it takes some years, but I can tell you that some years ago I was talking to Mr. Rozlucki former President of the Warsaw Stock Exchange. When we started some 18 years ago to create the Warsaw Stock Exchange he collected a small, but very effective team and they succeeded in creating the stock exchange in half a year. But afterwards, some years later, he was discussing the timeframe with someone from abroad, and he said “Well, normally it takes at least two years. Luckily we did not know that at that time, so I was able to create it in half a year.” Very optimistically it could be half a year but more realistically is to do it in two years. It will also have very good results.

Q: What will be the advantages for the Albanian economy and Albanian businesses?
A: It’s very important for a growing economy to have real capital market possibilities, investments for the people, for retail investors and also for institutional investors to have possibilities of these types of markets. On the other hand, it is very important for companies because an effective capital market and an effective stock exchange, create several possibilities of re–valuating how much the company is worth, and the possibility of collecting money to further develop companies.
It’s also very important from the pan-European point of view because there is a very important programme in the European Union to create one global marketplace. But for that, it’s important that you have local markets that are dealing with local companies, with local investors, so both have possibilities of investing and earning money locally, while also giving free access to the global market; for both Albanian investors to access European markets and for foreign investors to invest money in Albania for Albania’s growing economy. It’s very important that all the processes are organized in a safe way, effectively, so that there is proper disclosure of information.
It’s also very important and, not so easy a task, for companies that want to be listed, because such companies must be much more open with information and what’s going on inside.. But this is very important for the future of companies because it’s like free advertisement. A company which is listed on the stock exchange is advertised throughout the whole country, the whole of Europe.

Q: What will be the economic advantages?
A: Some benefits, well, if companies can develop, new companies can also be created. It’s profitable for the whole economy. It makes it easy to collect money for creating new companies, and those companies are much more transparent. Companies are growing, so the earnings of the companies are growing; the salaries of people who are working for the companies are also growing. If companies are developing, people who are investing in the stock exchange are also earning money. They earn money which they can invest in different places, in creating new companies, new places of work, new employment. So it’s really, really important. I can say from Poland’s experience – it created a lot of places for employment and our earnings started to grow.

Q: Finally, when do you think Albania will have a capital market?
A: It’s a good question. I hope that next year you will have at least some beginnings. So, you see, when you have beginnings of a capital market you start thinking more globally. You start thinking not only of law requirements but also in terms of what’s called corporate governance. I hope next year you will have the stock exchange working with the first companies listed, which will open the way for thinking globally on corporate governance. It is a self-regulating approach, so you will realize that it’s important to have good laws, but what’s much more important is that you start to think that not only law is necessary but your way of thinking, your openness to business, to creating markets, to creating transparent markets.
What’s very important, is that you can assure your investors that their investments are safe, that they will not loose money through silly steps, so that they can invest in a sound way, with the prospect of really earning money. A stock exchange is not gambling. Sometimes you may lose only some money, not all the money, and it’s normal that sometimes it’s a bearish market and you are losing money, but you can be certain that the whole market will become bullish, the whole economy will.