Albania ‘sacks’ IMF

TIRANA, Jan 8 – The International Monetary Fund gave an end to its mission in Albania after the country fulfilled the standards to raise into a higher standard and not ask for the same kind of assistance as before.
On Thursday the IMF and the Albanian government signed the sixth and final review of the PRGF/EFF arrangement with the mission which practically gives an end to its mission in the tiny Balkan country.
Finance Minister Ridvan Bode thanked the IMS for its assistance to post-communist Albania but also hailed himself and the government for performing well and managing to pass the country to another assistance level.
He said the executive had successfully performed the goals of the three-year agreement with the IMF maturing enough to raise the country from the direct and open monitoring to that of following only 2-3 main economic parameters.
He mentioned some figures like the budget revenue increase from 24 percent to 28 percent of the GDP, public debt fell from 60 percent to 52 percent of the GDP.
“Today we given an end to this method of cooperation to find new forms of cooperation with the Fund,” said the minister.
The IMF said in its last mission in November that the Albanian economy in 2008 had performed strongly. Inflation had returned to the Bank of Albania’s 3ѱ percent target range, while growth has remained buoyant and on track to reach 6 percent again this year. Debt consolidation has continued, and the underlying external position is sound, with the recent increase in the current account deficit reflecting mainly temporary factors.
Generally sound macroeconomic and structural policies have underpinned this favorable performance and laid the groundwork for future gains. Interest rates have been held consistently above inflation; budgetary policy has supported macroeconomic stability; supervisory regulations in the banking system have been tightened and updated; and there have been clear improvements in the business climate. However, growth in tax revenue has now slowed. Also, the privatization of the electricity distribution company has been successfully launched, although KESH’s financial position is again worsening. But the IMF also repeated that the country’s GDP annual growth was at 6 percent and not 9.9 percent as the government (based on Institute of Statics) has said. The IMF has also warned the authorities to continue strengthening of the regulatory and prudential regimes to further safeguard financial sector stability. It is expected that the sixth and final review under the PRGF/EFF-supported program will be presented to the IMF’s Executive Board before the arrangement expires on January 31, 2009. (Tirana Times Staff)