WB: “Cut infrastructure investments”
14/12/2011 00:00
Linda Rama: Between Family, Work and Albania’s Future 18/08 14:30
The World Bank suggested the government to consider cutting big
infrastructure investments, due to the difficult economic situation and
public finances.
“It is not an easy choice, because the country needs to improve infrastructure, needs roads, needs to improve the electric and aqueduct networks. But if the situation in the Eurozone will deteriorate and if the revenues will be lower than predicted in the 2012 budget, it might be necessary to postpone some of this big infrastructure projects. The situation should be monitored carefully and not wait for a midterm period to make these regulations, but to intervene as soon as possible, if possible”, declared Xenia Ivovski, director of the World Bank for Albania.
“The Bank has strong reasons, because it is the first time that we recommend such an extreme measure, but this way the public debt and the expenses for the key sectors will not deteriorate, such as education and health”, Ivovski declared.
The crisis has significantly reduced Albania’s development pace. Mrs. Ivovski says that fortunately, all institutions foresee a growth for Albania, but slower than before.
“We predict a medium growth of 3%, which is much slower than what Albania used to have. This means that there will be stagnation and poverty will be reduced slower. This smaller economic growth means a possible increase of inequality, which must be the main concern, and a slower improvement of the living standard for all Albanians”, Ivovski declared.
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