According to the Bank of Albania, the restriction on the use of cash cannot happen immediately because the citizens and businesses need time to adapt to the new payment methods.

Ledia Bregu, Director of Payment Systems, Accounting and Finance at the Bank of Albania, said in an interview with reporters that any measure should be taken by evaluating the current level of physical cash circulation.

According to her, the process requires sufficient time for citizens to embrace a new payment model, while the restrictions imposed must respond to the real living needs of the individuals.

Bregu emphasized that the reduction of cash is now necessary because its use is costly for the Albanian economy.

“Recent studies by the Bank of Albania and the World Bank show that the circulation of physical money costs the country about 1.7% of the GDP, much more than electronic payments,” said Bregu.

She added that the transition to digital payments will bring lower costs, greater efficiency and more transparency in the economy, making it easier to monitor and control transactions.

However, she noted, this process is accompanied by risks, the most important of which is related to the low level of financial education. According to Bregu, the lack of knowledge can increase the risk of fraud and misuse of data in the digital space.

The Albanian government has introduced new cash transaction limits as part of its “Cashless Albania 2030” initiative to combat informality and promote digital payments. These changes, included in the 2026 fiscal package, are expected to come into effect by January 1, 2026. The limit for cash payments between businesses is reduced from the current 150,000 lekë to 100,000 lekë. For the first time, a limit for cash transactions between individuals and self-employed persons/traders has been established, set at 500,000 lekë.

The process of reducing cash marks an important step towards modernizing the economy, but remains closely linked to raising citizen awareness and strengthening security in the use of digital services. e.xh/j.p/p.s./

The group that had the greatest impact in the cost increase was that of salaries which increased by 6.6%. Also, machinery expenditures increased by 2.4% and transport expenditures by 1.7 %.

On the other hand, material prices fell by 0.6%, due to lower prices of construction materials, electrical and communication materials, as well as hydro-sanitary and ventilation materials. /j.p/p.s./

Compared with the first quarter of 2023, the highest increase is noted in the group of energy expenditure by 7.5%, followed by salary expenditure up by 4.4 %, transport spending increasing by 3.7 %, material expenditure by 2.5% and machinery expenditure 1.5%.

In the group of material expenditure group, the construction material subgroup recorded highest increase by 2.6%, followed by hydro sanitary and ventilation materials by 2.5% and electric and communication materials by 2.1%.

/u.sh/

He stated that his working travels abroad have cost less than half of the flights done by the former prime minister Sali Berisha, declared non-grata by the US State Department.

The prime minister wrote in the social media that, “People with tails instead of tongues who make fun of Albania and Albanians, poor people in the service of Russian rubles! They continue to claim of €22 million for the prime minister’s flights, while my travels abroad have cost less than half of the non-grata person’s flights,” said Rama.

Earlier in the day, in a statement to the media, the chairman of the Democratic Party in opposition Sali Berisha said that Edi Rama is the only prime minister in Europe and the world who has made 137 charter travels worth 22 million Euros./r.e/p.s./

During a meeting in Bulqiza, Rama reacted to the opposition’s accusations about his travel expenses.

“As prime minister, I cost the Albanian taxpayers 4 times less travel cost if we compare year by year 2021 with 2010. Berisha used to spend 2.5 million old lekë on one travel, for me the cost is 650 thousand lekë. This is the truth according to the bills. Meanwhile, that “taxi” of mine, which is not mine, is a service “taxi”, as journalists also travel on its board and do not pay anything. The same is true for the delegations. Having smaller delegations, not taking bodyguards overseas, not staying in expensive hotels, but return within the day-this is the cost, very simple”, said Rama.

Further on, Rama said, “It is true that since 2020, when we took over the presidency of the OSCE, we made an agreement with the “Air Albania” for “Air Albania”’s interest in promotion, to have a plane available for working travels”.

“I make all private trips at my own expense. The agreement has been renewed, changed. In the end, the truth triumphs”, said Rama.

“They should go to the prosecutor’s office and answer for the millions they took from Albanians through failing to pay the taxes they should have paid”, said Rama pointing to the people in the opposition who accuse him. /j.p/p.s./

According to INSTAT data, the construction cost index measured 100.9 points in the first quarter, rising 0.6 percent compared to the same period of the previous year.

“Other expenditures” group recorded highest increase by 0.9% compared with the first quarter of 2020, followed by “Machinery expenditures” and “Salary expenditures” groups, respectively growing by 0.8 % and 0.5 %. The “Transport expenditures” and “Material expenditures” groups rose respectively 0.4% and 0.3 %.

The group “Material expenditures”, the index of the subgroup “Electrical materials and communication” recorded the highest increase by 1.5 %.

The Construction Cost Index measures the price of construction materials, labour cost and other capital spending in implementing 8-10-storey building projects.

/j.p/u.sh/