The Albanian government says it has been consulting with the IMF on stable economic policies, and is taking strong measures to reduce public debt
TIRANA, March 24 – Albania’s government made a public commitment to reduce public debt this week at an international conference where leading banks and finance experts discussed the risks the country faces in 2010 due to the global economic crisis.
The government, through a speech by Finance Minister Ridvan Bode, said it is committed to reduce debt and expenses and urged banks to offer more credit to the economy.
“We have begun a policy of gradual reduction of debt and deficit, and even though the parameters are comparatively better in comparison with other countries, we think about development and support a more sustainable approach for the economy, which requires lower levels of public debt and gradually reducing the country’s deficit,” Mr. Bode said.
The conference was the latest in a string of events, as bankers and officials are increasingly meeting to better coordinate their efforts.
Mr. Bode said international institutions like the International Monetary fund would help with the efforts. The Albanian government has been consulting with the IMF on economic policies stable, and is taking strong measures to reduce public debt.
“In this context, we are discussing and deciding how government, starting in 2010, can have a more prudent macroeconomic policy and are also addressing and discussing with the IMF for the determination of a fiscal rules which would enable the creation of more stable foundations of the Albanian economy.”
Albania has seen economic growth rates higher than many countries in the region during 2009, but the global crisis has affected its financial and macroeconomic indicators, but Mr. Bode said the government is determined to have a strong regime of expenditures with the aim of reducing the budget deficit and public debt as a result.
The opposition’s economic experts had earlier expressed their distrust of government measures to reduce the debt which, according to them, the government deepened for political purposes last year by significantly increasing what they called “election expenses” of the government. They also pointed out its inability to raise enough revenue from customs and taxes.
In addition, Albania is seeking banks to finance the economy in the country, for a healthy macroeconomic system Ministry of Finance Ridvan Bode said.
“The Albanian economy needs crediting and more healthy crediting rules. This why I should note that loan applications should be well analyzed,” the minister said.
“Good monitoring system in place protected Albanian banking system from the effects of global crisis,” the minister added.
The conference was organized by the Bank of Albania and participating experts said that the crisis can be overcome only with the cooperation between the government and the banking system, with greater transparency and a credit system that is bolder than in the past.
Bank of Albania Governor Ardian Fullani asked for more transparency from the banking system in the country, saying that only through increasing its effectiveness, the economy can move toward full development.
“Responsible finances mean that the creditor will choose better partners that are better able to perform. They will exert their pressure on institutions that distribute funds to have the necessary transparency and information not only on annual reports, but in the market, where transparency is a must for businesses,” Mr. Fullani said.
