The World Bank warned the Albanian government that the trespassing of the debt limit will damage the economy.
The Head of the World Bank Mission in Albania, Ksenia Lvovski, declared that the trespassing of the debt limit is not a good signal for the market and the economic growth.
She added that Albania must focus on consolidating its finances. She declared that the government must improve the tax collection and cut wage and pension expenses, adding that the massive debt has become a problem not only for the World Bank, but also for the other main financial institutions. In its last missions in Tirana, the IMF asked the Albanian government to keep the debt under 60%, as in 2012.
But the government has foreseen a deficit of 3.4% that brings the debt to 62.2% of the GDP, without including the guarantee that is needed for the electric power import. This deficit means that next year the government will take 490 million USD in loans for the expenses.
“Financing the high deficit is another immediate concern for our conditions, when the economy is slowing down and creditors are becoming more prudent”, Lvovski declared.
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