IMF approves EUR 330.9mn loan agreement with Albania.

By bne IntelliNews March 4, 2014

The Executive Board of the International Monetary Fund (IMF) approved on February 28 a 36-month SDR 295.42mn (EUR 330.9mn) arrangement under the Extended-Fund Facility (EFF) for Albania in support of the authorities’ reform program, the IMF said in a statement. The amount equals to 492.4% of country’s quota in the Fund. The decision allows for immediate disbursement of EUR 26.4mn.

The financial support has been requested by the Albanian government in order to enable clearance of arrears and unpaid bills towards the private sector.

The financing will help the country meet its external financing needs while providing the necessary support to strengthen fiscal and debt sustainability, lower public financing risks, and put the economy on a sustained medium-term growth path.

The IMF has urged Albanian authorities to implement fiscal consolidation measures in order to lower the public debt to GDP ratio to below 60% in the mid-term. The Fund believes that this will require significant tax and expenditure policy measures, supported by extensive public financial management and tax administration reforms. It recommended putting in place mechanisms to prevent recurrence of arrears.

The IMF also noted that further moderate easing of monetary policy could help support economic recovery, provided inflation expectations and financial stability remain well anchored. Reducing NPLs will safeguard financial stability and may help release credit supply constraints by lowering bank risk aversion.

The World Bank and the EU are also likely to provide assistance to the authorities’ reform program.

Related Articles

Albania’s competition authority probes three mobile operators

Albania's competition authority has launched a preliminary investigation against three mobile operators for changing their tariffs for pre-paid mobile phone customers. According to the ... more

Albanian left-wing parties unite behind ruling Socialists ahead of election

Small Albanian left-wing parties have withdrawn their registrations to stand in the June 25 general election so that all their support goes to the governing Socialist Party (SP) led by Prime Minister ... more

Six Albanian ministers to leave their posts under deal between government and opposition

Six ministers in Albania’s Socialist-led government will be replaced with technical ministers as part of the agreement reached between Prime Minister Edi Rama and opposition leader Lulzim ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Dismiss