The Covid-19 pandemic has significantly increased the level of public debt in the country as a result of crisis response expenditures, which in total reached 79.7% of GDP at the end of the third quarter of last year.
For economics expert Adrian Civici, such a debt rate is worrying for a fragile economy like Albania’s, as it reduces investment opportunities in key sectors of the economy.
“We have to be very careful and sensitive about debt because we continue to have demands to borrow in the domestic or foreign market regarding spending on Covid-19 or public investment. But on the other hand, the bigger the debt, the narrower the possibility for financing in vital sectors such as education, health and infrastructure”, said Adrian Civici.
According to Civic, the chances of returning the falling debt in this moment of crisis are difficult, so the government should establish a better control over it, whether by negotiating restructuring or extending its repayment time, so as not to compromise. economy.
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