IMF Approves Loan for Albania

TIRANA, Feb.8 – The Bank of Albania (BoA) announced last week that the International Monetary Fund (IMF) has approved a 2.4 million Special Drawing Rights (SDR) ($3.6 million/2.8 million euro) loan tranche under its current three-year lending program with Albania. IMF deputy managing director and acting chair Murilo Portugal said in a statement that “Albania’s macroeconomic performance has remained strong. Inflation is low, the external position has improved, and economic growth has picked up. Looking forward, maintaining these gains alongside further reduction in poverty will require additional growth-enhancing structural reforms.” In January 2006, the global lender approved a 17.045 million SDR three-year loan arrangement with Albania. Half of the funds will be provided under the IMF’s facility for low-income countries, which provides financing at preferential rates. The rest of the loans will come under the fund’s Extended Fund Facility and Albania will have to pay IMF’s market-related interest rate. The current tranche is the third disbursement under the programs. The IMF has issued recommendations regarding some of the crucial sectors of Albanian economy. It has urged the government in Tirana to ensure stable energy supply and further improve the financial performance of the state-run power utility KESH. The global lender has also urged the government accelerate privatization in the telecommunication and insurance sectors. (Tirana Times Staff)