S&P lauds significant improvement in Albania’s finances, hails restructuring of banks

One of the reasons why Standard & Poor`s continues to maintain unchanged the sovereign debt of Albania and especially a sustainable Outlook is undoubtedly attributed to fiscal consolidation.

This road is improving the sustainability of the debt, says the announcement for Albania in the part dedicated to finance.

This journey is clearly visible, with rising income and fiscal reforms that have proved efficient, which is the first point outlined in the assessment of credit ratings.

The other two refer to the high public debt and risk it poses, as well as the restructuring of the banking sector and the decline in non-performing loans, along with euroization.

“Consolidation in the financial sector goes on. The problem of non-performing loans decreased to 14% by the end of 2017,” reads the assessment.

Standard & Poor’s also positively assesses the good liquidity situation of banks operating in the country.

“The central bank has consistently failed to achieve the inflation target over the last few years. Despite the alleviating monetary policy, we project that inflation will not reach the 3% target before 2020,” states Standard & Poor`s.

SCAN

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