Debt continues to grow

The official data of the Ministry of Finance show that compared to the end of last year, public debt rose in the first six months with about 43.6 billion or about 436 million dollars. The strong growth is due to high levels of government spending in the first half of the year, which were financed by aggressive borrowing in the market.

The Ministry estimates that the country’s total liabilities at the end of June amounted to nearly 62 percent of the total national production of 61.5 that was at the end of 2012. Expectations are that by the end of the year, figures will rise again, beyond this level.

Since 2007, government debt increased by almost 8.5 percentage points to the national production. The strongest growth was that of 2009, because due to the high costs of Durres-Kukes financed road, the debt jumped by nearly 5 percentage points.

Strong economic slowdown and high government deficits and debt, have put it on an unstoppable growth trajectory. Monetary Fund and the World Bank say that this is a dangerous course for financial stability of the country, telling once more to the government to stop the growth of debt.

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