Privatization helps finance the budget

TIRANA, 09 March 2009 — Revenues from privatizing state owned properties during the last two years will be included in the government’s budget for 2009 and most of it will be used to finance investments in infrastructure. The Ministry of Finance said that the sum in question is close to 280 million euro. According to an agreement with International Monetary Fund, half of it will be used to pay government’s debt and the other half for investments.
In that last two years the Albanian government has worked intensively to complete many important privatization deals. The process was greatly helped by the use of new, more efficient procedures and a better price evaluation system.
About 125 million euro came from the sale of ARMO, the state owned company for the production and preparation of petrol products. The deal for the sale of ARMO was finalized early in 2008, however, the money was cashed in only in December therefore it could be included in the 2009 budget.
Another 102 million euro came from the privatization of Energy Distribution Operator (OSSH) earlier this year.
Last autumn, Albania government declared its intention to sell its entire stakes in some of the biggest companies in the country. Only a week ago, a 13% of state stakes in AMC, an Albanian cell phone company were sold to the Greek Cosmote, the major stakeholder of AMC. The sale brought in another 50 million euro directed for the budget.
In addition, the government announced a few days ago its intention to sell the remaining of its stakes, 25%, from Albtelekom. Albetelkom was only privatized last autumn when Calik Enerji Telekomunikasyon Hizmetleri A.S. (“CETEL”), a Turkish company, bought 75% of its stakes.