Improving Auction Procedures for Immovable Collateral under Foreclosure

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Banks complained that the foreclosure procedures are too long and cumbersome. In addition, the process might be prone to subjectivity in the phase of the appraisal expert selection and building appraisal as there are no commonly accepted standards for the valuation of the real estate.

Actually the process is rarely successfully completed. Banks are indirectly forced to take possession of the immovable when it is offered in a public auction and due to the ceiling in the fixed assets to total assets ratio, the immovable has to be sold in a short time and sometimes in unfavorable conditions.

Current Status

Updated on: January 6, 2009


Amendments to Civil Procedure Code

Improving Bailiff Service

The first two phases of the projects were concluded in December with the enactment of the two laws by the Parliament. Regarding the third phase of the project on appraising standards for building, in consultation with the PWG, the Project Owner appointed Mr. Andin Jakova from International CommercialBank to represent SPI Albania working group and the banking community at large in the IFC project.


·The Project Management Team participated in the hearing session of the Parliamentary Commission of Legal Affairs, Public Administration and Human Rights where they presented the PWG amendment proposals and their respective arguments.

PWG have sent to MoJ their comments on Bailiff Liberalization Draft Law, together with the main findings of the banking survey on the difficulties in interacting with the bailiff offices.
· PWG finalized their proposals for amending Civil Procedure Code provisions on auction procedures for immovable collateral under foreclosure.


· The Project Manager has provided study cases from real life experience that illustrate the impact of the current regulatory framework on the bank’s businesses.
· PWG members Veronika Prifti (PM) BKT; Andin Jakova, ICB; Ermal Dobi TB, Rudina Ziu RB, provided their inputs/suggestions on necessary Civil Procedure Code amendments.
· PMT formulated the draft PWG proposals for Civil Procedure Code amendment.
· PMT and SPI Secretariat attended 2 meetings with MoJ representatives from the Enforcement Department.
· SPI Secretariat has drafted: Project ToRs, a Note on International Experience, Scoping the Problem Document, a Questionnaire on Banks’ difficulties in dealing with the Bailiff Office.
· SPI Secretariat ran with AAB support the banking survey and based on the collected feedback drafted a document on its main findings.


· SPI Secretariat Evaluation Results
· Project owner letter to international organizations
· PWG Recommendations on Civil Procedure Code Amendments
· PWG Recommendations on Improving Bailiff Service
· Regulatory Impact Assessment Questionnaire Main Findings
· EBRD Albanian Mortgage Enforcement External Memo
· Aggregated individual contributions on the Civil Procedure Code and PWG Proposals
· Questionnaire on Bank’s Difficulties in Dealing with the Bailiff Office
· Note on International Bailiff Experience
· Note on Enforcement of Collateral
· Project Terms of Reference



Seyhan Pencapligil Project Owner (PO), CEO, Banka Kombetare Tregetare
Veronika Prifti Project Manager (PM), General Counsel, Banka Kombetare Tregetare
Rudina Gorishti Deputy Project Manager (DPM), Deputy Legal Director Bank of Albania


Andin Jakova, Eduart Reci International Commercial Bank
Erion Lena
Alpha Bank
Ermal Dobi Tirana Bank
Andon Daka Credins Bank
Arta Taipi United Bank of Albania
Alban Mehmeti, Altin Hysi Emporiki Bank
Rudina Ziu Raiffeisen Bank
Dorina Mehmeti International Finance Corporation
Rezarta Bitri Ministry of Justice
Mirela Behluli Appraisers’ Association
Kimmo Vikman EURALIUS

Terms of Reference

SPI Committee Documents

Project Working Group Meeting Agendas, Documents and Minutes

Fourth meeting

October 28, 2008

Agenda and Minutes

Third meeting

September 26, 2008

Agenda and Minutes

Second meeting

July 30, 2008

Agenda and Minutes

First meeting

July 4, 2008

Agenda and Minutes