WB: Albania, the country with the highest public debt in the Western Balkans


According to World Bank financial imbalances impede economic growth in Albania. Removing the law in Albania, the ceiling of 60% for public debt threatens its further growth and exit out of control.

In an analysis of the "Deutsche Welle", which refers to World Bank figures, noted that Albania's public debt has reached in the first months of this year to 63.8% of GDP at a time when the region have lower public debt and higher GDP.

According to the World Bank, the bitter experience of Greece, with a public debt above 100% of GDP and attributing emblematic crisis of Greece as public debt crisis has sparked alarm to the international financial institutions are present in Albania.

World Bank through its representatives persistently Albanian government warned that if you do not sit or national public debt, Albania risks to suffer like Greece. Articulated concern as growing financial imbalances that hinder economic growth. New Director of World Bank and Regional Coordinator for Southeast Europe during his visit to Tirana, said that the growth of public debt is a danger to choke economic growth.

Recommendation No. 1 WB is the payment of overdue bills of entrepreneurs and private investors, who have committed major public works and are not paid by the government, as one of the causes of the growth of public debt.

New director of WB, Ellen Goldstein said that the most appropriate level of debt for an emerging economy like Albania is about 40% of GDP.

"This is a global standard, the economy is not under stress and at risk, but there is no magic figure than it should be the level of public debt. It is best to be low, "she said.

Ksenya Lvovski, World Bank Country Director said: "fiscal measures to address fiscal imbalances will be part of a draft of the government, to be released June 23 parliamentary elections. Whatever government to be formed after the elections will faces the task to improve the situation of public finances, to improve the efficiency of revenue administration and enhance the sustainability of fiscal regime, "said Ksenya Lvovski.