Government to collect money with privatization

TIRANA, Jan 5 – Trying to avoid the negative effects of the global financial crisis will not be an easy task for the Albanian government, though it seems to have found the financial resources for protecting itself.
Financial Minister Ridvan Bode said the government would use revenue from the privatizations of public enterprises to stem the effects of the global financial crisis on the country in 2009.
“Some 215 million Euros from the privatizations will be used to curb the effects of the crisis,” Bode told a press conference at the end of 2008.
In 2008 the government launched a large round of privatizations which spelled the end of public ownership for the state’s last major assets, including the distribution branches of Albania’s power utility, OSSH, the state insurer INSIG and oil-refinery ARMO.
A 76 percent stake in ARMO was sold for 129 million euro, INSIG was sold for 25 million euro and a controlling stake in OSSH was sold for 102 million euro.
However, their contracts have yet to be finalized.
Previously the government had said that revenue would be used to raise pensions and wages for state employees prior to the 2009 parliamentary election, while part of the funds were also earmarked to finance the Albania-Kosova highway.
Further, pensions and published jobs were rewarded with a 5,000 lek contribution for the new year.
Tax revenues are also expected to fall in 2009 as global commodity prices shrink. That is expected to be followed by a slump of remittances from emigrants due to the recession that has hit neighboring states such as Italy and Greece that host largest Albanian emigrant communities abroad.
The government has forecast a 6 per cent GDP growth, though that figure has been 3.5 to 4 percent from the IMF and 4-4.5 percent from the central Bank of Albania.