Albania’s public debt increases by ALL 26 bln in the first quarter of 2017
Albania’s public debt at the end of the first quarter this year amounted to ALL 1 trillion and 92 billion, growing at about 26 billion since the beginning of the year.
According to official statistics of the Ministry of Finance, in real terms, public debt was about 68.4% of gross domestic product, from about 71% that it was reported at the end of last year.
However, the calculation of the Ministry of Finance refers to forecast of the national production for the entire 2017, so, for the moment, this calculation does not yet reflect the accurate level of national debt.
But, however, the objective envisaged in this year’s budget is the reduction of debt levels at approximately 68% of GDP and whether this objective will be realized is to be seen later in the year.
During the first three months of the year, government borrowing was made, overwhelmingly, through long-term instruments, confirming the continuity of the Ministry of Finance’s strategy to extend the average debt maturity.
This is done in order to benefit from a period of low interest rates and to reduce the risk of recurrent debt refinancing.
Now, long-term debt with maturity over one year, holds about 58% of central government debt stock.
Based on currency, the expansion of the debt portfolio between ALL and euro was balanced.
In addition to the usual borrowing in the domestic currency, the Ministry of Finance conducted an auction of bonds in euro in January to benefit from the high liquidity of the market in the European currency.
The banking system remains the main funder of the government’s domestic debt, with over 60% of the total, while the weight of individuals rose again in the first quarter.
Now, individuals hold 15.3% of the domestic debt, from 15% that it was at the end of last year.
SCAN
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