The drop in immigrant remittances, one of the main sources of foreign financing, and the low rate of foreign direct investment (FDI) need efficient measures to attract foreign capital, said the Bank of Albania (BoA) in its monetary policy report for the second quarter of 2010.

The central bank suggests establishing competitive advantages as a sustainable source of foreign financing.

Comparative analysis shows Albania has one of the lowest rates of attracting FDI in region, currently at less than 10 percent of the GDP.

Foreign direct investment registered a 25.6 percent growth in the first quarter of 2010, after a sharp drop in 2009.

FDI in the first three months of this year was mainly used to finance investments in the telecommunication and oil sectors.

FDI reached 154 million euros in the January-March period, increasing by 34 million euros year-on-year, according to central bank data.