Albania’s external debt at 7.83b euro, unchanged from last year’s
The external debt of the Albanian economy at the end of the third quarter of this year reached 7.83 billion euros.
According to the Bank of Albania data, the country’s external debt declined for the second consecutive quarter.
The total debt stock fell slightly by about EUR 22 million over the third quarter, while in overall it is almost at the same level as the beginning of the year.
This year, neither the government nor the private sector have significantly increased external liabilities.
The government, following the eurobond and the funding provided by the IMF and the World Bank in the past mandate, has now significantly reduced external borrowing.
Foreign government debt is fixed close to the value of 3.4 billion euros.
The same can be said for the banking system.
In terms of high liquidity, banks did not need external financing lines.
Consequently, their liabilities to non-resident entities have remained at almost the same level since the beginning of the year.
A similar performance has also been reported in the borrowing of private companies, whether in the form of debts to third parties or in the form of borrowing from parent companies abroad.
Both of these funding forms have fallen this year.
On the one hand, this may be a sign of a slowdown in new investments by these companies.
But, on the other hand, the fact is that the Albanian economy still has many untapped funding sources, mainly in the form of deposits of the banking system.
The ratio between loans and deposits is at 55%, which indicates that the system possesses large amounts of free liquidity to finance the economy.
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