COVID-19 “empties” the budget! The Eurobond / Government will require more money in foreign markets
The country’s confrontation with the coronavirus, has brought a blow to the state budget, which has changed as a result of measures taken to curb the epidemic. Thus, in the normative act adopted by the government, the expectation for annual revenues decreased by ALL 20 billion, spending increased by ALL 9 billion while the budget deficit doubled, reaching ALL 68.7 billion.
Under the act, a $ 12 billion financial package will go to measures to curb Coronavirus in our country. But the pandemic seems to have changed the government’s plans for the Eurobond as well. While so far the ceiling was set at 600 million euros, it seems that the demand for borrowing in foreign financial markets will be higher.
As for public debt, the act states that the threshold for the annual growth of the existing total of central government debt and guaranteed central government debt stock for the benefit of third parties for 2020, without including the potential effects of the change exchange rate is up to 84.3 billion ALL. At this point, finances explain that the value of the new Eurobond expected to be issued in May is higher than ALL 80.2 billion, or more than EUR 651 million. This is the first revision to the 2020 budget dictated by the COVID-19 pandemic.
The government has revised the budget to curb the spread of Coronavirus, cutting revenues by ALL 20 billion and increasing spending by ALL 9 billion. Meanwhile, it plans to issue a Eurobond worth more than 650m euros.
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