Debt keeps growing

Debt keeps growing
The debt limit law removal brought a fast increase of the government’s debt, beyond any predictions. Only two weeks after the law was repealed, the debt that was taken is three times bigger than predictions, warning a difficult year for finances.

A few days ago the government passed a Normative Act that initially increased the public debt with 7 billion more than budget predictions. But the act changed in last minutes, growing with 1.2 billion ALL, through which the government will pay bonus to pensioners, which this year is only 2000 ALL.

As result, by the end of the year goes the debt at 61.2% of the GDP, while in 2013 it is predicted to reach 63.2%, not 62.6% that the government had announced. This doesn’t include the guarantees that will be given next year for the Albanian Power Corporation, which will increase the debt at least with 1%.

And yet, this is not certain in an electoral year, when the debt calculations are based on optimistic economic growth suppositions. Experts warned that the debt limit law repeal would cost more and would encourage a faster growth, without an point of orientation; a situation that according to them puts in danger the financial stability of the entire country.