Government repaid more than half of oustanding debts to businesses in six months

Government repaid more than half of oustanding debts to businesses in six months

The Ministry of Finances announced on Friday that within six months of this year it has repaid a value of ALL 15.35 billion of outstanding debts to businesses, surpassing the predictions in the beginning of the year. The government announced by the end of 2014 that with the new budget to be approved in 2015 it would repay ALL 20 billion outstanding debts to businesses, the same as the amount predicted to be repaid in 2016.

For public investments have been allocated ALL 5.9 billion, for current expenses for merchandises and services have been allocated about ALL 0.3 billion, for VAT reimbursement the government paid ALL 5 billion while for expenses for “judicial decisions” and “expropriations” have been allocated respectively ALL 2 billion and ALL 1 billion.

According to experts, the repayment of debts by the government helped businesses to repay their outstanding fiscal obligations to the state, thus increasing the incomes to the state budget. The repayment of the outstanding debts to businesses has been one of the prior commitments of the current government and according to official figures the repayment scheme is resulting successful.

Official statistics issued from the Ministry of Finances show that the previous government had accumulated an amount of ALL 72.6 billion as outstanding debts to businesses. On May of this year, the International Monetary Fund interrupted the process of the repayment of these debts due to an audition on the manner of debts’ repayment. The process restarted in the mid-May of this year.

News source/photo credits: ATA, Images Money (Flickr)

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