World Bank worried over debt level

TIRANA, June 1 – Unlike the Albanian government, the World Bank said it was worried over Albania’s public debt level. Indermit Gill, the chief economist of the Europe and Central Asia Region of the World Bank, said the current level of Albania’s public debt is concerning. In an interview to local media after a World Bank conference in Tirana, Gill said that middle-income developing countries like Albania cannot tolerate high levels of debt.
“When middle-income countries reach a debt level from 40 to 60 percent they become subject to what we call debt risk,” said Gill.
According to Gill, 2010 will be a difficult year for emerging Europe and that the performance of the economy will depend on how governments will manage public finances.
The World Bank Office in Tirana hosted the second bi-annual Conference entitled “Albania – World Bank conference on development economics- Maintaining growth in a challenging environment.” This two-day conference addressed the means to sustaining growth in Albania in the wake of the world economic crisis, and the new development challenges to Albania as it pursues greater integration to Europe.