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Job Description
Location : Tirana, ALBANIA
Application Deadline :**18-Aug-08**
Type of Contract : SSA
Languages Required : English
Starting Date : (date when the selected candidate is expected to start)26-Sep-2008
Background
The Government of Albania is pursuing a strong pro-business and pro-investment policy and is aiming to boost trade across the region and internationally. It also plans to improve national competitiveness to ensure that new jobs are created by attracting foreign investment to the country’s regions. The private sector plays an important role in the Albanian economy. It contributes an estimated 80% of GDP, and provides over 70% of total employment.
In early 2007, being aware of the challenges related to attracting foreign investments, and also based on recommendations produced by the previous EC-UNDP funded Trade Liberalization and Promotion Project, the Government identified the following priorities:
* Increase FDI flows through improved privatization and concession processes;
* Increase FDI flows in specific sectors such as shoes and clothing, business services and construction materials;
* Strengthen capacities of structures to promote trade and FDI and implementing Government strategies and policies in the area of business and investment promotion;
* Ensure that half of the investment needs of the Albanian economy in 2007-2013 are covered by FDI; and
* Establish industrial parks complete with the necessary infrastructure and services, to significantly reduce investment costs where ownership rights and inadequate infrastructure are still an obstacle to attracting foreign investors.
To further support the capacity of the Government of Albania in the area of trade and FDI, a new project has been designed and will be provided by EC and UNDP. Through this EC-UNDP funded assistance, UNDP Albania will manage a team of international and national experts who will work to increase the government capacity to promote and upgrade levels of trade and investment.
Specific Context
Albanian exporters have experienced difficulties in obtaining credit and loans from the banking sector and the cost of those loans is relatively high. It has also led to a situation where Albanian exporters are being over cautious in their export initiatives, often linking sales to a single known and therefore low risk customer.
On October 29th 2007, an Export Credit Guarantee Fund scheme was launched by Albinvest with an initial capital of ALL 200 million from the Government. The purpose of the fund is to reduce the credit risk of the exporter, covering 85% of the working capital requirements for a minimal cost (%). This concept was recommended by the previous project and it was intended that this current project would support the launch. The fund has so far received 9 applications and processed 5 credits. The scheme currently has a cautious leverage ratio of 1:1. In the long term, it is envisaged that the fund could become an independent export credit agency, and as the uptake of the fund grows, it should be able to multiply in size and leverage (i.e. a fund of ALL200mn should be able to guarantee export credits 5-10 times greater).
However whilst there appears to be some interest in this ECGF, the inception phase has not ascertained the overall level of interest and demand for such a scheme and this needs to be conducted to ensure that the potential uptake described above can be realized.
Objectives of this Assignment:
The main objectives of this consultancy are to:
* Ensure the devised fund scheme is structurally sound and meets market requirements.
* Upgrade the capacity of the relevant department in Albinvest to deliver and manage the Export Credit Guarantee Fund.
* Enhance the promotion of the ECGF by Albinvest and the banks.
Duties and Responsibilities
The International Export Credit Guarantee expert will:
* Review background documentation related to the previous assistance in the area like Export Financing Study, ECGF manuals and procedures, contract models, etc.
* Investigate the current status of the ECGF within Albinvest
* Meet with the unit of ECGF in Albinvest and other relevant stakeholders like banks and interested businesses
* Undertake a brief diagnosis (by taking into consideration also the assistance delivered under the previous project) of demand and review of current operations of ECGF within Albinvest and interested banks
* Upon definition of needs and gaps, provide suggestion on training, mentoring, and advising according to the confirmed interest.
* Suggest working models between banks, business and Albinvest’s staff based on considering international best practices.
* Delivering of a training session to the ECGF staff on credit risk analysis (bank staff may be invited to participate).
* Coaching in promotion of the credit guarantee program.
Expected Results:
* Support to increased uptake of ALL 200million funds thereby including increased guarantee applications and a low default rate. Improved understanding of export finance by Albinvest.
Competencies
* Banking and financial expertise in the design and development of export credit guarantee schemes in emerging markets.
* Credit risk analysis training experience.
* Experience working with SMEs and understanding constraints of exporting in CEE countries.
* Experience promoting, marketing, or selling export credit programs.
Required Skills and Experience
* The International Consultant should be experienced (10 years) with relevant projects in the area trade finance and export promotion
* 10 years’ experience working with banks, credit and export guarantee agencies in emerging markets in Central and Eastern Europe
Please click to apply online.
