The Government accepts binding international arbitration on investment disputes and has over 40
internationally accredited arbiters on the country arbitration list. The arbitrators will use the appropriate
law based on issues determined by the parties. If the parties cannot agree on the issues involved in the
case, the arbitrators will make the appropriate assessment. The judicial system continues to suffer from
corruption and unreliability. The GOA has established the High Council of Justice to investigate claims of
judicial misconduct, but the results are still lacking.
Although the situation is improving, investors cannot yet fully rely on the enforceability of contracts.
Foreign firms and institutions have also been subject to nuisance lawsuits aimed at receiving cash
settlements. Recent investment disputes have focused on the ownership of land considered ideal for
tourism, mostly along the southern coast.
The Albanian Government has established a Credit Guarantee Fund for Small and Medium Enterprises
with the assistance of the Italian Government. The $3.5 million Fund is used as collateral for companies
applying for commercial loans. ALBInvest, the business promotion agency, has also established an
annual fund of $300,000 to assist exporting companies.