Euro 62 million will be used to pay the debt

Tirana, June 24. The Ministry of Finances is completing work on the supplementary budget due to be approved by the Albanian parliament in July. Sources at the Ministry of Finances said that only ALL 12 billion are going to be used to increase capital investments. In the supplementary budget, the Ministry of Finances is going to also include Euro 125 million from the sale of ARMO, the state owned oil refinery. However, the money coming from the privatisation of ARMO is going to be used to pay back parts of the foreign debt and to finance the construction of the Durr촩-Morina road. The agreement with the International Monetary Fund stipulates that all money coming from the privatisation of public enterprises is going to be used to repay debts and to finance strategic investments.
Although, the Ministry of Finances has allocated funds, another ALL 12 billion for capital investments are going to be used to finance projects already under construction. It is not expected that the Albanian Ministries will be able to start new projects during 2008.
The Ministry of Finances is threatening certain Ministries that it will withhold at least part of the money allocated if the Ministries fail to invest the funds according to the plan. It is already known that, during the first quarter, Albanian state institutions managed to use only nine percent of the funds allocated for capital investments. (Tirana Times Staff)