Albania’s public debt reduced to 71% of GDP – Gov’t aims 56% target by 2019
Last year, Albania reduced its public debt for the first time since 2010.
Preliminary statistics from the Ministry of Finance show that in 2016 the debt was reduced to 71% of GDP, down from the historical record of 72.7% reported at the end of last year.
The strategy of public finance management provided payment of arrears that were accumulated within 2015 and a gradual reduction of debt levels in 2016 and onwards.
It is expected that this year the public debt will reach the figure of 69.1% of GDP, while the target is reducing it to the level of 56% of GDP by 2019.
At face value, Albania’s public debt at the end of last year was 1 trillion 66 billion ALL, increasing by 2.2% compared to the end of 2015.
The ratio between debt incurred in the domestic market and external debt did not undergo any changes, and according to the figures domestic debt constitutes approximately 52.7% of the stock of debt.
The government has continued this year to move towards long-term debt, especially with regard to domestic debt.
Long-term debt, with a maturity of over one year, has reached 57.3% of the total domestic debt, from 53.9% at the end of 2015.
With this move, the government aims to reduce the risk of refinancing and to take advantage of the cycle of lower interest rates in financial markets.
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