The financial system in Albania is really fragile, mainly focused in banking system. This banking system faced a sharp rise in non-performing loans after 2009. The level of NPL-s has increased from 10.48% on 2009 to the pick of 23.49% on 2013. Then, it started the decline arriving to 13.23% on 2017. The focus of this study it is the determination of the main macroeconomic factors affecting the level of bad loans. We tested statistically the role of GDP growth, inflation, unemployment level, Money Aggregate M2, Exchange rate and interest rates for loans, in the level of NPL-s. The data were taken from World Bank and Bank of Albania database. The data were elaborated through statistical program E-views 10. We conducted a multiple regression and the macroeconomic factors explaining NPL-s resulted: the GDP growth, the monetary aggregate M2 and the interest of loan. This connection resulted negatively correlated with GDP growth which began to grow after 2013 arriving at 3.84% on 2017, and positively correlated with M2 which has experienced a slight increase in these years; and interest of loans which is still low in Albania, decreasing from 2001 and on. These macroeconomic factors should be taken in consideration by Albanian authorities when compiling their plans and strategies.

Summary Economic cooperation and trade between countries of region is very important as a opening step for entering in big markets

In the focus of this paper are self-employment and its role in decreasing unemployment in Albania. Self-employment is very important for the employment of individuals, especially if there aren't other employment opportunities due to the reduction of jobs, due to the lack of specialization or specific education. One of the most sensitive social problems of recent decades in Albania is high levels of emigration due to the unemployment and all measures that can be taken to increase the employment in the country are crucial. The country's economic growth is a direct factor that influences the opening of new enterprises or even the expansion of current enterprises, thus increasing employment. The purpose of this paper is to analyze the impact of self-employment on employment. To achieve this purpose, is studied the relation between self-employment, economic growth and exports with the level of employment. The relation between employment as a dependent variable and self-employed people, GDP growth rate and export as independent variables is studied through a linear model. After the analysis using the least squares method, in this paper it is concluded that the self-employed have a significant positive relationship with the level of employment in the country.

In Albania, most businesses are classified as SMEs and their importance in the economy has grown exponentially in recent years. As SMEs comprise the majority of businesses, their taxes are crucial for the state budget. The purpose of this paper is to understand the SMEs’ attitude toward tax compliance. The objective of this research is to assess tax knowledge of SMEs as a precondition for tax compliance. Tax noncompliance has been a prevalent issue, and the tax authorities have undertaken a reform in this regard. This paper aims to understand the current situation regarding tax compliance. The current study is based on questionnaires distributed to 348 SMEs. Businesses responded to questions related to the recognition of taxes, duties and procedures. SMEs are separated in two groups, small and medium by annual turnover, in order to achieve the most accurate survey results. The results of the questions were not always the same for both groups. There are more small businesses that are not familiar with taxes, duties and tax procedures, resulting in conclusion that medium businesses are more tax compliant than small businesses. Tax authorities need to know the situation of SMEs, get their opinions on taxes and duties and take them into consideration.