Government brings back hidden debts
22/05/2018 16:35
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According to the IMF, the government should have paid this money to private businesses, for reimbursing VAT, but they haven’t done it and have declared them as state budget revenues.
The Albanian government has created more than 100 million EUR of hidden debt, according to the IMF, which notes that the government has started creating delayed debts once again.
According to the IMF, the total debt based on due payments in the public sector reached 210 million EUR, 132 million of which come from the central government, the rest from local municipalities.
Although the debt has been inherited for years, the one of the local government was created almost entirely last year.
The detailed IMF report says that most of the unreimbursed VAT belongs to three companies only, which are realizing the biggest investments in the country, including the Trans-Adriatic Pipeline.
The government itself admits that they haven’t paid VAT in time to these companies. But the Ministry of Finances said for Top Channel that the payment was scheduled for a later period, based on agreements with businesses, and this is why it cannot be considered a delayed debt.
Hidden obligations to businesses were the main reason why Albania’s public debt jumped to 73% of the GDP.
After the elections of 2013, the government of Edi Rama borrowed 726 million USD to pay old debt owed by Berisha.
This matter even turned into one of the most important cards of the Socialist Party campaign, with Edi Rama promising to liberate businesses from this injustice. But, according to the IMF, the government has started once again not paying businesses.
Top Channel
