200 million USD for crisis

“The world has become a dangerous place, especially for what is happening in Europe, and especially for countries like Albania, that are more depended from the Eurozone. Albania has been affected by these developments, due to the trade and financial dependency. For this reason, the World Bank decided a general policy which is not only for Albania, but for all the countries of the region, in order to offer bigger funds. By what we have been able to understand, the government is interested for everything that can be offered on the table”, Hood declared.

Asked by Top Channel if the additional financing package is a support for the governments that have had success in reforms, Ksenyia Lvoski, chief of the Office for Tirana, declared:

“The main reason of this financing is to help European underdeveloped countries that are affected, to keep a stable economic growth, despite the foreign debt increase. This package is based on the weak evaluation that these countries have due to the Eurozone. In Albania, these funds will be used for reinforcing the reforming program that aims governing and competitiveness.”

Besides the reforms for the economic growth, the additional loan that the World Bank will give to the government will also be used for the financial sector.

“It is clear that Albania has been affected by a high level of bad loans, and we are treating this case with the Albanian institutions, starting with the Ministry of Finance. Secondly, we want to improve the capacities of the Central Bank and the Ministry of Finances for monitoring the bank’s performance, in order to improve Albania’s ability to respond, if there will be a strong hit from outside”, declared Michael Edwards, expert of the financial sector.

The talks are in the first phases and no final decision has been taken, but it seems that the government will be obliged to accept some conditions for this loan.

“There are two aspects in these negotiations. The first is related with the macro-economic aspect, in which is included the public debt. The other aspect is more specific, and is related with the characteristics of each sector, either the financial sector or the economic growth and the competitiveness”, Hood declared.

The money under discussion mounts up to 200 million USD. The government needs money, especially foreign currency, and is obliged to address to the Bank for a cheap debt, but in exchange it will be obliged to concede fiscal sovereignty.

The government has refused similar offers from the International Monetary Fund, exactly for avoiding the harsh conditions of the funders.

Top Channel