IMF with concessions: “Caution with risks”

“We had two main points. First of all, this should not be the highest priority of the reforms at the Tax Directory. It will give some profits, such as additional data, but there are reforms that are more urgent than this. Secondly, it was not visible that the revenue division formula, which is part of this partnership, was the most advantageous part of this government in the financing terms”, the IMF says.

Not only for the VAT project, but also for other initiatives, the IMF has asked the government to make a more detailed analyze before giving concessions.

“The public-prviate partnership and concessions are a form of funding for public investments. We want to make sure that the government has a complete understanding of the dangers and obligations that might appear in the future, and that it can analyze the suitability of the Public-Private Partnership or concessions in comparison with other forms of financing”, said Jens Reinke, head of the IMF in Albania.

But how is the IMF seeing the economic situation?

“We see positive developments. The economic growth is getting better, although with a slow pace. We had to reduce our projections, but despite this, the recovery continues. This year it will be dominated by higher foreign investments and by more trust from the domestic consumers”, the IMF says.

The resident representative of the IMF commented the government changes that affect the main Ministries with which the IMF is cooperating.

“The New Minister of Finances is a well-known colleague, but the most important changes and the more positive ones are positive in the institutional and individual aspect. The government plans to consolidate all functions of public finances at the Ministry of Finances. Some responsibilities that are part of the ministry of economy will now pass to the ministry of finances. This includes public investments and the strategy for reducing bad loans. I see this as a positive sign”, says the IMF resident in Tirana.

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