Public debt at 71.5% of GDP at the end of 2017, down by 0.9% compared with 2016

The Albanian government aims to reduce fiscal debt through the process of fiscal consolidation.

According to operational data of the Ministry of Finance and Economy, 2017 closed with a debt level of 71.5 percent of GDP, from 72.4 percent of GDP at the end of 2016.

Two years have already passed since the government initiated in 2015 a consolidated path of reducing public debt.

According to the heads of finance, there is a non-negotiable and irrevocable commitment to fiscal consolidation.

The government aims to reduce public debt to 63 percent by the end of 2020.

The government plan has been announced in the Mid-term Debt Management Strategy 2018-2020, and the executive aims to implement it by having key objectives; ensuring the realization of government’s funding needs as well as the needs to serve the current debt at the lowest cost and keeping unacceptable levels of risk exposure.

During this 3-year period, it is anticipated that there will be an additional foreign financing in the form of commercial loans or through entering international markets with Eurobonds.

This additional funding is deemed necessary to reduce the pressure on the domestic market.

According to the strategy, the domestic market will continue to be the main source of funding in the period 2018-2020 and will cover gross terms on average over 75 percent of the general needs of central government for loans.

SCAN

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