Albania public debt hits new high
The level of debt this year reached 540 billion leks (€4.4 billion), or 150,000 leks (€1,225) per capita.
Thursday, October 18, 2007
Albania’s public debt has reached 54 per cent of GDP in 2007, just 6 per cent short of the barrier allowed by the EU for countries in the Eurozone - which Tirana aspires to join one day.
The level of debt this year reached 540 billion leks (€4.4 billion), or 150,000 leks (€1,225) per capita.
However, the government says it is not worried about increased debt, as long as Albania continues to attract foreign direct investment.
“Theoretically Albania can increase the amount it borrows, if it secures investments. That’s the golden rule that every government follows,” said Sherefedin Shehu, the deputy Minister of Finance.
According to government projections, the level of debt for 2008 will reach 576 billion leks (€4.7 billion).
However, the ministry of finance says that the level of indebtedness will be reduced because of the expected higher rate of GDP growth.
“In total we have a goal to reduce the public debt in relation to GDP. That is necessary to create enough [borrowing] space so the finances don’t come under pressure,” explained Shehu.
The government strategy also aims to lengthen the timescale for repaying debt, thereby lowering what it has to pay each year in servicing its obligations.
In 2008 Albania will pay 20 billion leks (€163 million) in interest on outstanding loans.
Further reform necessary in Albania,
says NATO Secretary General
The President of Albania, Bamir Topi, visited NATO Headquarters on 19 October to discuss with NATO Secretary General Jaap de Hoop Scheffer Albania’s reform process and its NATO membership aspirations.
Mr. De Hoop Scheffer said NATO members were looking at the reform process. He stressed the importance of implementing reforms, including non-military areas, and that Allies remain ready to help and assist Albania in this process.
“Further reforms are of great importance,” Mr. De Hoop Scheffer told reporters, “The invitation tickets are not punched yet.”
Mr. Topi expressed his country’s determination to deepen reforms, including in the electoral or the justice systems and to focus on the fight against organised crime and corruption. He highlighted the necessity for all the Albanian political forces to collaborate in these efforts.
The Secretary General praised Albania for its contribution to NATO’s operations, including the International Security Assistance Force (ISAF) in Afghanistan and the logistical support to the naval counter-terrorism Operation Active Endeavour in the Mediterranean Sea.
Albania is one of the three countries in the Membership Action Plan, the NATO programme of advice, assistance and practical support tailored to the individual needs of countries wishing to join the Alliance.
At the November 2006 Riga Summit, NATO Heads of State and Government declared that the Alliance intends to extend further invitations to countries that meet NATO standards to join NATO at the next Summit, in 2008
Krijoni Kontakt