IMF approves loan

The International Monetary Fund announced through a press release that the loan will be used for supporting the reform program of the Albanian authorities. This loan gives an immediate fund of 36.4 million USD.

According to the announcement, the World Bank and the European Union will offer a similar assistance for the government.

After the loan was made official, David Lipton, Vice Director General of the International Monetary Fund, declared that the Albanian economy is expected to improve in 2014, helped by the planned reduction of risks in the fiscal sector, on paying due obligations to businesses, taking measures for bad loans and launching structural reforms.

However, the International Monetary Fund noted that the risks are significative and the financial needs of Albania are huge. Loans, according to the International Monetary Fund, will help Albania complete its needs for external financing and secures a support which is necessary for reinforcing the stability of the public debt, by placing the economy in a stable growing trend.

“The elevated public debt of Albania imposes a fiscal consolidation to bring it under the 60% of a mid-term period”, declared the International Monetary Fund.

“This will require measures for spending and taxes”, the fund declared.

The reduction of due debts and establishment of mechanisms that would prevent them from repeating in the future is very critical. Guarding the financial stability by encouraging economic loans is considered as another measure which requires a reduction of bad loans.

The Board of Directors of the International Monetary Fund underlines that the plans of the authorities for reforming the retirement system, the energy sector, the public administration and the business climate are more than welcome.

According to the International Monetary Fund, is implemented, these reforms would reinforce Albania’s abilities to attract foreign investments and improve the perspective of the Albanian economy in a stable growth for a mid-term period.

The Albanian government notes that 120 million USD will be taken this year from the International Monetary Fund loan, to be used for paying the due payments planned for this year.

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