Albania: First Post-Program Monitoring-Press Release; Staff Report; and Statement by the Executive Director for Albania

IMF Staff Country Reports, November 30, 2020

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Canonical URL: Albania: First Post-Program Monitoring-Press Release; Staff Report; and Statement by the Executive Director for Albania

Albania continues to be severely affected by the aftermath of the November 2019 earthquake and the COVID-19 pandemic.
The authorities responded promptly to the shocks, and macroeconomic and financial stability have so far been maintained.
The economy is expected to contract sharply in 2020, followed by a gradual recovery in 2021-22.
The outlook is subject to major uncertainty and rising downside risks as a second wave is gripping many countries in Europe.
Albania’s capacity to repay the Fund is adequate, but risks have risen in light of the shocks.

Aside from a more severe pandemic, key risks stem from:
- elevated public deficits and debt,
- weaknesses in public finances,
- a relatively high level of non-performing loans (NPLs), and
- euroization.

Authorities responded promptly to the November 2019 earthquake and the COVID-19 pandemic.
Macroeconomic and financial stability have so far been maintained.

Subject: Budget planning and preparation; COVID-19; External debt; Fiscal risks; Health; Public debt; Public financial management (PFM); Revenue administration
Keywords: BoA stress-test; Budget planning and preparation; COVID-19; CR; Europe; ISCR; night curfew; staff appraisal; test positivity rate; test rate