February 16 (SeeNews) - Albania's judicial system remains inefficient and vulnerable to political interference, and corruption is still perceived as widespread, U.S.-based think-tank The Heritage Foundation said.
The country ranked 65th in the foundation's Economic Freedom Index, with an overall score of 64.4, declining from last year's 63rd position. The Heritage Foundation evaluated Albania as moderately free.
The index, published on Wednesday, explores twelve criteria in four main areas - rule of law, government size, regulatory efficiency, and open markets. The annual study and ranking compare entrepreneurial environments of 186 countries worldwide.
In the last years, Albania has made a considerable progress in income growth and poverty reduction, the foundation said.
"Expansionary government spending has led to budget deficits and growing public debt in recent years, but the deficits have been narrowing," it noted.
Procedures to start a business in Albania have become less costly, the think tank added. The Heritage Foundation evaluated as positive the fact that there is no longer a minimum capital requirement for setting up a company.
"The banking system has benefited from increased competition and remains stable, but the number of nonperforming loans hinders credit growth," the organisation noted.
The Heritage Foundation evaluated particularly high Albania's trade, monetary and business freedom, and sees as most problematic the criterias 'government integrity' and 'judicial effectiveness'.