Brace: Bank of Albania, responsible for crisis

“Bank of Albania has been open to the political aggression against the state finances for the elections. The deficit surpassed with 180 million USD. Compared to one year ago, which is considered a normal year from the political aspect, this surpass is 270 million USD”, Brace declared.

In the first six months of the year, almost all the most important fiscal indicators of the budget went outside the limits set by a Parliamentary law.

Due to the high spending and reduced income, the government crossed the debt limit with 186 million USD, consuming 80% of the annual total in just six months.

But Mr.Brace says that the most flagrant violation is the domestic debt, the main indicators in which government policies interlace with the Central Bank.

“Bank of Albania closed its eyes and left the government to overpass every legal parameter planned in the state budget law, as regards internal debt, to the point that 91% of the debt foreseen by law has been exhausted for six months”, Brace declared.

The Socialist Party Parliament Member declared that the bank allowed the debt increase that was used to fund the government electoral spending.

“The months when this situation took place, according to the government tabulates, are February, March, April and May. In these months the government had a large need to fund the campaign, and the Bank of Albania allowed the government to touch the legal domestic debt levels to the point that in September it will be very difficult to govern this country”, Brace declared.

Mr.Brace is not the only critical voice for the Bank of Albania. Other public finance experts have held the same stance in public.

A few days ago, the former Deputy Minister of Finances, Adriana Berberi, declared on Top Channel that Bank of Albania is the main responsible after the government for the deep crisis of public finances.

Top Channel