Albania Public Debt increased to 884 BN leks on 2013

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March 1  

Public Debt in Albania increased by 56 BN leks to 884.5 Bn leks (6.32 BN euros) during 2013.

Data published by the Ministry of Finance shows that debt jumped to 64.61 per cent of Gross Domestic Product compared to 61.5 per cent in 2012.

The majority of the new debt was absorbed in the local market while external debt increased by just 6 BN leks.

The cost of total debt service increased to 56.1 BN leks, from 52.2 BN leks in 2012. Debt service as percent of GDP increased to 4.1 per cent the highest level since 2004.

The government aims to increase further the public debt this year in order to pay arrears incurred in public works contracts and in tax refunds before starting to curb it in 2015 or 2016.

The stated objective is to return the public debt to more sustainable level of bellow 60 per cent of GDP in 2018, an objective considered somehow ambitious.