Albania with the highest debt among the countries of the region

The Covid-19 pandemic has significantly increased the level of public debt in the country as a result of spending on coping with the crisis, bringing it to 79.7% of GDP at the end of the third quarter of last year. For economics expert Adrian Civici, such a debt rate is worrying for a fragile economy like Albania, as it will reduce investment opportunities in key sectors of the economy. "We have to be very careful and sensitive about debt because on the one hand we continue to have demand and pressure to borrow in the domestic or foreign market regarding spending on Covid or public investment. On the other hand, the larger the debt and especially its annual installments, the narrower the opportunity for financing in vital sectors such as education, health and infrastructure, "said Adrian Civici, expert on economics. Eurobond issue of 650 million euros last year strongly influenced the increase of government debt, listing it according to the European Commission in the first place in the region for the highest level, which leaves behind Montenegro with 78.1% and Serbia at 57.1%. But has the debt been used properly? "Albania has used a significant part of the debt to repay old debts, another part for emergency needs and very little has been used in the last 2 years or in the ongoing ones for investments that affect economic growth and employment", thaCivici. According to Adrian Civic, the chances of turning debt into a downward trajectory in this moment of crisis are difficult and the government, which has projected to reduce it to 78.6% by the end of 2021, must establish better control over it, whether also possible negotiations for restructuring or extension in time of its repayment so as not to affect the economy.