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Is the internal debt twice higher than actual estimates?

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17 years ago
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Relaying opinions given lately by economy experts, business editor Gjergj Erebara, believes the internal debt to be twice higher than it is actually officially quoted (Shqip, 19.06.2009). The actual calculations do not list fixed government expenses, such as obligations to retired persons. The quoted experts believe such obligations should be included in the calculations of the internal debt. That would mean an internal debt that would be perhaps twice as high.
Shqip quotes the actual internal debt to have reached 400 billion Albanian Lek련equaling nearly 4.1 billion US Dollars) and the external debt to have reached 2.2 billion US Dollars.
Numerous developed countries consider obligations to social insurances as public debt, according to the newspaper, which informs that Albania estimates it has nearly 530 thousand retired people and that the social security system is financed up to 40 % by the budget of the state.
Last year the public debt represented nearly 50 % of the Gross Domestic Production (GDP), but this year it could reach up to 56 %, writes Shqip, recalling that European Union (EU) countries work to prevent the public debt from passing over 60 % of the GDP (over 60 % is considered as a failure risk threshold), and that in these EU countries the public debt includes the social security debt. If the social security debt was to be included in the public debt, the Albanian public debt could surpass the failure risk threshold, estimates Erebara.
Twenty years ago the retirement age was 50 years for women and 55 years for men, reminds Shqip , which says that since 2002 the retirement age has advanced numerous times to reach currently 60 years for women and 65 years for men.
Classifying this obligation towards retired persons as public debt would at least stop the country from going deeper into a debt it cannot refinance, appraise the experts.

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