The International Monetary Fund in its latest report on Albania has come up with a list of recommendations for the government, asking for more care regarding the management of public finances, in order to have sufficient funds to cope with the Covid-19 health emergency.
A worsening of the situation with the pandemic, IMF experts estimate, requires a quick response and more reserve funds ready to be used at any moment, as this would put the economy in great difficulty.
“A more severe pandemic would worsen Albania’s economic outlook through weak tourism, reduced remittances, external demand and foreign direct investment,” the report said.
In addition to emergency measures, the IMF has also issued an order for increased control and transparency regarding the funds of the reconstruction process. The Fund has once again articulated the request for non-implementation of the fiscal amnesty and has recommended, among other things, the avoidance of frequent fiscal amnesties.
In the report, the international financial institution also focused on the increased risks that the Albanian economy is facing. “An extension of the pandemic is seen as the main risk that is putting great pressure on public finances.”
A challenge for the economy remains the high public debt, an indicator that according to the IMF can reach 88% of GDP, while forecasting a significantly lower level at 80.9% for this year. According to the fund, the PPP (public-provate-partnerships) concession contracts remain a concern, which they have reiterated the call for increased control over these projects.
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