TIRANA, July 1
The European Bank for Reconstruction and Development (EBRD) will provide a Euro 218 million loan to the Albanian electric power sector. The Albanian government signed the agreement with EBRD on Friday.
Minister of Finance Arben Ahmetaj declared that the loan will serve for the reconstruction of the electric power system, which suffered from the deep inherited debt. According to Ahmetaj, the sector recently reflected positively in the country’s economy and budget.
The Minister added that the project aims at achieving long-term sustainability of the Albanian energy sector.
“The procedures will be used to refinance and lengthen the tenors of short-term sovereign guaranteed overdrafts which KESH has entered into with commercial banks on an emergency basis and require annual reapproval, perpetuating a liquidity crisis as well as uncertainty and instability,” it was said in EBRD’s press statement that was released month before signing the agreement.
News Source: ATA
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