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This article aims to analyse the specific economic conditions that Albania should meet in order to deal with an efficient financial restructuring process. Financial Restructuring is the reorganization of the financial assets and liabilities of a corporation aiming to create an efficient financial environment. Past experience of Albania has shown many reasons why financial restructuring is important, such as poor financial performance, external competition, depreciation of market value, emerging market opportunities. In addition, During the last decade the quality of the loan portfolio of Albanian commercial banks decreased significantly, due to an tremendous increase in the Non performing loans; NPLs jumped to more than 20%, level which according to Dziobek et. al (1998) determines the banking crisis of a country. Despite of the fact that many efforts are done in this framework, the results are yet to be unseen. The profitability ratios, the capital ratios and solvency ratios are still not restored. For this reason, in order to prevent the banking system to go into default, I propose implementing a banking restructuring reform, which will lead the system out of this vicious cycle. In order to efficiently deal with restructuring process, Albania should meet some economic conditions. Some of this specific economic conditions are related to economic growth, inflation, interest rates, market concentration and IMF support. The methodology on which this study is based is a mix of qualitative and quantitative analysis based on secondary data. This study expects to find results supporting the literature review. By the end of this article, the main conclusion whether Albania is …