Albania’s rating was better than five other countries in the region, according to the New York-based international agency.
TIRANA, Dec. 16 – Citing economic growth, low inflation and fiscal reforms, Moody’s the international rating agency, has given Albania a B1 stable outlook rating at the end of this year.
Albania’s rating was better than five other countries in the region, and Albania was the only country to keep its positive rating, according to the prestigious New York-based agency, which released its figures this week.
Moody’s rating is used by specialized international institutions to assess the credibility and effectiveness in governance of the country. It is judged on a clear, impartial look at the pro-reform model, pro-business and pro-European integration direction in the economic policies pursued, and it’s a boost to Albania’s government, according to the country’s Finance Ministry.
Despite the political issues and the global economic crisis, Albania remains economically stable, according to the latest report by Moody’s, which is one of the three major reference agencies in the world.
In its analysis, the rating agency said the positive outlook is due to significant progress in the development of a market-based economy and democratic institutions; the signing of the Stabilization and Association Agreement with the EU that provides guidance for political and economic reforms; as well as a relatively healthy, if not basic, financial sector with little direct exposure to the global financial crisis.
The assessment remains the same as that of April, and is an indication that the Albanian economy has been coping with economic crisis better than all other Balkan countries, which have a more negative assessment.
Moody’s rating makes it easier for the government to obtain loans, but it also helps the Albanian economy by giving some assurance to foreign companies to extend their investments in Albania.
The Albanian economy is in good condition, given the global decline, but forecasts are very variable. For example, GDP is projected to grow not more than 2-5 percent this year and 3-6 percent in 2010, while budget deficit is the range of 4-6 percent of GDP this year, and government envisages a deficit of less than 4 percent in 2010.
So far, it appears that the data support the positive outcome of the forecast range. However, less optimistic forecasts are much better than at the time of global crisis, according to Moody’s report.
“A mainstay of assessment of Albania is a long-term perspective of EU membership. Recent developments have been mixed: the EU failed to lift visa restrictions for Albanians to travel to the bloc of 27 countries, but supported their membership preparations. The importance of the latter should be exaggerated as it is only an estimate by the European Commission for Albania’s readiness to start membership talks,” according to the report. “Even if ultimately successful results, Albania is not likely to join the EU for at least 10 years. But the steps that Albania will have to take if it wants to become a member, such as economic, political and institutional, are undoubtedly the positive assessments.”
