Albania’s debt devaluation by “Standard and Poor’s” is no good news for
the economy. The Deputy Minister of Finances, Erjon Luci, declared that
the managing of our country’s finances will be more difficult.
“We may have more difficult financial term in the international market. Also other foreign private commercial agents might make it more difficult for Albania. This makes the debt management even more difficult”, Luci declared.
Returning the credibility on the public finances has turned one of the biggest challenges for Albania. Deputy Minister Luci says that the government is working with the International Monetary Fund exactly for this issue.
“What we are trying to do for the moment, is finding a clear balance between regaining the credibility of public finances and orienting towards growing policies, but the second remains a main objective. In this case we can add what we have underlined several times, that a stable economic growth is needed, not just an economic growth”, the Deputy Minister said.
Standard and Poor’s declared that they reduced the evaluation for Albania’s public debt from B+ to B, due to the strong growth of the government’s obligations and their deviation from former predictions of 58% to 67% of the Gross Domestic Product.
S&P says that this growth came as result of using the budget for electoral purposes before the elections, and because the new government recognized the debts of the previous one, which are valued to 4% of the Gross Domestic Product.
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