Malaj: Economy endangered by debts

“This is a real increasing concern. This conclusion derives from bad loan analyses made to other countries. Albania not only has a high public debt, but the bad loans of the state to private companies have increased, while the budget entities in private companies has deteriorated. The Albanians can feel this deterioration not only in businesses, but also during trade exchanges among each other”, Malaj declared.

Malaj warns that if this phenomenon will not stop, the costs for the economy will be high, even to the worst case scenarios.

“If you see the countries that are facing a crisis today, most of it has happened because they have underestimated the bad loans, not only for the public debt, but also for the debt that private operators have created between each other or with the banking system of their country. There where the economic growth is based on the debt increase for its citizens and companies, the collapse has been inevitable.

But how can this situation be managed? The former Minister of Finances says that the solution comes from the budget and the participation of banks.

“If they are not stopped in their source, which is the state budget, and if there is no complete analysis in the private banking sector; if the business is not liberated by the heavy burden of loans and the lack of an option of restructuring loans by collecting bad loans without blocking credits, then all of this together create a professional opportunity to amortize the problem initially and offer a final solution afterwards”, Malaj declared.

In the last two years, the economy has faced a quick increase of bad loans, not only the official one in banks, but also the debt network created among private and public companies.

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