IMF warns government

The last IMF report, which made a detailed scanning of all European countries, says that Albania and Croatia are the only economies that are deteriorating the public finances after the crisis, when most of the other countries are taking strong measures for consolidating them.

IMF says that in the next two years, Albania’s public debt will increase with one percentage point, compared to 2010, for reaching a level of 59.2% by the end of 2012. Although some of the regional countries will increase debt during this time, IMF separates Albania from the others, as one of Europe’s weakest fiscal economies, for two reasons:

First, Albania is the second country with the highest debt in the developing European countries, after Hungary, and there’s a big difference with the countries that come after.

Secondly, according to the IMF, Albania has the big interest weight due to the short term loans.

37% of Albania’s total public debt has a 1 year deadline. This number is 4 times greater than the average of the region, and puts the government in a difficult position and constant need for money that will be used to pay the obligations or renew them.

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