Why the IMF agreement was needed

“The global economic and financial crisis was not treated with the right care. The previous government had not clear idea regarding its effects and timeline. While the budget revenues were plunging each year, the government increased the spending. Especially in the electoral year, when debt limits were removed. This spending and degrading economy created a hidden debt equal to 5.3% of the Gross Domestic Product”, Cani declared.

The opposition declared that they were in favor of an agreement with the International Monetary Fund in principle, but the former Minister of Finances said that the conditions signed by the current government will destroy our economy.

“The Albanian people are obliged to pay a higher cost through this agreement, mostly coming from bad governing and the chaos created in six months”, Bode declared.

The hottest point of this agreement is about the tax consolidation and placing the public debt under control. The Democratic Party says the government has promised to the International Monetary Fund to increase 10 taxes, the energy price and retirement pension age.

“An annex of this agreement which was in the report that was presented to the Executive Board by the Albanian authorities and the International Monetary Fund staff, shows 10 new taxes that will be imposed if the tax package that was approved in December will not be effective. It is certain that these taxes will be imposed”, Bode declared.

“You say there will be 10 taxes, when the paper you talk about says that these are possible taxes in case the scenario we agreed on will fail. No new tax will be imposed to the Albanian citizens from this agreement”, Brace declared.

“Everything was made not because of the International Monetary Fund, but because of the analyzation and identification made by the fund, and the measures proposed to balance the government’s objectives. These measures are painful for the citizens, destructive for business and damaging to the mid and long-term progress of our economy”, Bode declared.

“You are responsible for this, especially for 2013. You deepened the public debt level. $230 million of taxes failed to be collected in June, July, August and September. You borrowed money from the Albanian citizens and from the Albanian businesses. How can you speak about a mistrust climate from investors to a government that has been in power for six months, when you have caused this colossal damage in the private business sector”, asked the Chairman of the Commission for Economy, Erjon Brace.

The opposition asked that before the Parliament votes the agreement, the Commission should have a hearing session with the business and consumer associations.

“This commission should hear the interested parties and the effects that it will cause after it will be voted by the Albanian Parliament. The agreement is not just a piece of paper, but a bunch of conditions. The core of the agreement are the conditions, not the money. The disbursement of money means fulfilling all the terms and conditions one by one”, Bode declared.

“The staff of our Commission contacted the American Chamber of Commerce and they stated they had not requested to be part of the Commission. We contacted with the Tirana Chamber of Commerce and they said they are not aware and have not requested to be part of the Commission of Economy”, Brace declared.

The government borrowed 339 million EUR from the International Monetary Fund, which will be used for paying the debts created with private businesses.

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