Securities exchange offers a good chance to fund “1 billion euro” project: Expert Meka
The “1 billion euro platform” introduced by the Albanian government could be an opportunity to activate the capital market in Albania.
Elvin Meka, a financial market expert and administrator of Luarasi University, says in an interview with Scan that banks should not be seen as the only option to finance these projects.
According to him, the coincidence with the opening of the first Private Securities Exchange is a good chance to prove the provision of funding through the instruments of this market.
Meka is of the opinion that the enterprises that will win the contracts for these projects can try to secure part of the funding through issuing bonds.
Meka is of the opinion that financing these projects from banks will require a case-by-case analysis and this process should not be seen as a formality.
More generally, he opines that the so-called 1 billion euro platform poses significant risks over the long term.
Though in the first years the injection of large amounts of money into the economy will have positive impacts on the economy, the effect of additional spending that it will bring to the budget may be disturbing.
Increasing budget expenditures can become an unbearable burden for the budget and will require tightening measures and eventual tax increases for Albanians.
In view of the stimulus for the economy, Meka supports the Bank of Albania signals to extend the monetary stimulus for next year.
According to him, the country’s economic growth will only be achieved when we have a genuine revival of the private initiative and an increase in domestic consumption.
In recent years, the growth of the Albanian economy has been driven by increased investment, concentrated on a few major projects.
The progress of these projects towards conclusion has brought dilemmas to the sources of growth of the Albanian economy in the upcoming years.
Only the IMF has lowered the projections for economic growth starting from next year, and this because the TAP project has reached its peak, while the private sector of the Albanian economy has not yet fully recovered.
The government will try to offer incentives through a public-private partnership package, but it is not yet clear how successful it will be on this initiative, starting with finding funding.
To support the strengthening of private demand, the Bank of Albania has signaled signs of prolonging the high monetary stimulus even next year, without excluding further increase of this stimulus.
SCAN
*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.