In the next year, the Ministry of Finances predicts to receive a debt of
41 billion ALL, half of which is expected to come from the local banks,
and the rest from the financial donating institutions, with softer
conditions.
Based on the experience of 2011, when banks were reserved in giving loans, there’s a chance that the budget deficit will not receive the necessary financing.
The Managing Director of the Public Debt at the Ministry of Finances, Xhentil Demiraj, declared for Shqip that they have taken all measures for covering the deficit and that the government has all necessary financial resources.
“The current situation with the banks shows the general climate in the region, but our plan for asking 19 billion ALL from our banks does not put them in danger. In 2010 we received 30 billion ALL, and the market responded positively as regards the liquidity in support of the economy”, Demiraj declared.
In an official document that follows the Budget 2012, the Ministry of Finances admitted that the banks have limited their participation, due to their inner policies about the risk, especially for the obligations’ auctions. This declaration from the Ministry clearly shows the banks’ hesitation to finance the government.
What is the government’s plan if the banks will not respond in time for the need of funds? Demiraj explains the next maneuver:
“We have some alternative sources. If the banks will not respond to our request for these funds, we will address to development banks and institutions of financial donations. We have planned to loan 22 billion ALL from these banks and we have also prepared other alternatives, if needed. The financing is not a problem”, explains the main manager of the Albanian public debt.
As regards the “Moody’s” report, Demiraj says that the company left with positive impressions and the B+ evaluation was expected, in conditions when Albania has a debt level under 60% of the GDP, a conservatory budget, a low deficit and economic growth.
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