Standard and Poor’s credit rating for Albania stands at B/B

Standard and Poor’s has confirmed the B/B evaluation for Albania regarding the short and long term debt of the country, in general terms.

The report cites: “We expect that the annual change of the Albania government’s general debt to shrink under 2% of the Gross Domestic Product in the two upcoming years, while during the period of 2012-2014 this norm was 5%.”

As for the economic growth, the report keeps unchanged the previous prediction, according to which the economy of Albania will grow by 3.9% during 2015-2017 period and the government’s debt is expected to decrease to 60% starting from 2018 (2015 – 69%).

According to its report, the agency predicts that the country’s debts will have a positive performance during this year, in terms of the fiscal consolidation and debt reduction.

These are requests made by the International Monetary Fund for the Albanian financial state institutions as well. The report underlines the positive performance of Albania in the fiscal consolidation and in the implementation of reforms in the energy sector.

 Another move that has affected positively has been the non-intervention of the Bank of Albania in the currency rate, seen by Standard and Poor’s as signs of the economic revival. The report evaluates as a positive movement the reform that the government has undertaken in the strengthening of the financial institutions and the management of the public sector finances.

Since 2013 the government has undertaken several strategic reforms, most of which have shown the first positive effects in the economy. These reforms are mainly focused in the energy system, in pensions in Customs and Tax Administration.

The report also predicts that foreign direct investments will increase significantly and will increase the potential of Albanian exports, mainly in the hydropower sector. As for the remittances, the report predicts that they will remain on the quote of 7% in report to the Gross Domestic Production.

News source/photo credits: Scan TV