## Albania Successfully Concludes Three-Year IMF-Supported Program

_IMF News, February 28, 2017_

## Source details

**Canonical URL:** [Albania Successfully Concludes Three-Year IMF-Supported Program](https://www.imf.org/en/news/articles/2017/02/27/na270217-albania-successfully-concludes-3-year-support-program)

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## Bibliographic details
- Published: February 28, 2017

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### Program conclusion and financing
- On February 24, Albania drew the last installment of a SDR 295.42 million ($400.4 million) credit line, successfully concluding its three-year program aimed at restoring economic growth and controlling the rapidly rising public debt.

### Key achievements of the program
- economic growth accelerated to over 3 percent;
- the budget gap narrowed by 3 percent of GDP, helped mainly by growing tax revenues;
- public debt declined from its peak of 73.7 percent;
- government arrears have been mostly cleared;
- the budget now records a surplus before payments of interest on the country’s debt;
- the reform of the pension system and the electricity sector has advanced considerably, lowering the two sectors’ reliance on budget support;
- the ratio of overdue bank loans fell and parliament agreed on a bankruptcy law to resolve the bad loans; and
- overall fiscal and financial frameworks have been strengthened.

### IMF assessment and message
- “The program has successfully put Albania on a recovery path with sound public finances,” said Anita Tuladhar, the head of the IMF team for Albania.
- The program strengthened the institutional framework, reduced vulnerabilities of the economy, and helped maintain economic stability despite difficult external conditions.

### Policy recommendations and remaining challenges
- continue efforts to lower the public debt and borrowing needs;
- reform property tax and reduce tax exemptions;
- make public financial management more efficient and modernize the tax administration;
- resolve the overhang of overdue bank debt that impedes lending; and;
- press ahead with the recently launched, EU-supported justice reform initiative and related structural reforms to address governance concerns and an inefficient justice system.

### Background context
- In 2014, Albania’s economic growth almost slowed to a halt as the economic crisis cut demand from Greece and Italy, its main trading partners.
- At the same time, public debt surged and arrears accumulated due to election time splurges, an unsustainable pension system, and an unviable electricity sector.
- The banking system, on which the government relied heavily for borrowing, had weakened due to a high ratio of overdue loans, increasing financing pressures.
- The IMF loan aimed to help address these fiscal and financial challenges and restore economic growth in Albania.

### Main indicators of Albania
- GDP growth (percent): 2013 — 1.0; 2016 — 3.4
- Primary balance (percent of GDP): 2013 — -2.0; 2016 — 0.2
- Overall balance (percent of GDP): 2013 — -5.2; 2016 — -2.2
- Tax revenues (percent of GDP): 2013 — 22.0; 2016 — 24.3
- Non-performing loans (percent): 2013 — 23.5; 2016 — 20.4

*IMF News — Albania Successfully Concludes Three-Year IMF-Supported Program (February 28, 2017)*

---

## Content in this bundle

- [Country Report (PDF)](/external/pubs/ft/scr/2016/cr16142.pdf){rel="external" type="application/pdf"}

---

## References

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- [Stepping Up to Meet Low-Income Countries’ Pandemic Recovery Needs](https://blogs.imf.org/2021/07/26/stepping-up-to-meet-low-income-countries-pandemic-recovery-needs/)
- [The IMF Approves Policy Reforms and Funding Package to Better Support the Recovery of Low-Income Countries From the Pandemic](https://www.imf.org/en/News/Articles/2021/07/22/pr21222-imf-approves-policy-reforms-funding-package-support-low-income-countries-from-pandemic)
- [Urgent Action Needed to Address a Worsening ‘Two-Track’ Recovery](https://blogs.imf.org/2021/07/07/urgent-action-needed-to-address-a-worsening-two-track-recovery/)
- [Seizing the Opportunity for a Pro-Growth, Post-Pandemic World](https://blogs.imf.org/2021/07/20/seizing-the-opportunity-for-a-pro-growth-post-pandemic-world/)
- [The Policymaker’s Trilemma](https://blogs.imf.org/2021/05/12/the-policymakers-trilemma/)
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- [Four Questions About Debt and Financing Risks from COVID-19 in the Middle East and North Africa](https://www.imf.org/en/News/Articles/2021/04/27/na042821-4-questions-about-debt-and-financing-risks-from-covid-19-in-mena)
- [Six Charts Show the Challenges Faced by Sub-Saharan Africa](https://www.imf.org/en/News/Articles/2021/04/12/na041521-six-charts-show-the-challenges-faced-by-sub-saharan-africa)
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- [Impact of Conflict and Political Instability on Banking Crises in Developing Economies](https://blogs.imf.org/2020/07/29/impact-of-conflict-and-political-instability-on-banking-crises-in-developing-economies/)
- [Reopening from the Great Lockdown: Uneven and Uncertain Recovery](https://blogs.imf.org/2020/06/03/courage-under-fire-policy-responses-in-emerging-market-and-developing-economies-to-the-covid-19-pandemic/)
- [How the IMF Can Help Countries Address the Economic Impact of Coronavirus](https://www.imf.org/en/About/Factsheets/Sheets/2020/02/28/how-the-imf-can-help-countries-address-the-economic-impact-of-coronavirus)
- [Emerging from the Great Lockdown in Asia and Europe](https://blogs.imf.org/2020/05/12/emerging-from-the-great-lockdown-in-asia-and-europe/)
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- [Building on South Asia's Economic Success](https://www.imf.org/en/News/Articles/2019/11/01/NA110219-building-on-south-asias-economic-success)
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- [How Elevated Global Uncertainty Is Creating Challenges for Sub-Saharan Africa](https://www.imf.org/en/News/Articles/2019/10/17/na1819six-charts-on-how-elevated-global-uncertainty-is-creating-challenges-for-sub-saharan-africa)
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- [Managing Director's Statement on the Role of Fund Engagement in Fragile and Conflict-Affected States](https://www.imf.org/en/News/Articles/2018/10/04/pr18378-md-statement-on-the-role-of-fund-engagement-in-fragile-conflict-affected-states)
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- [Managing Debt Vulnerabilities in Low-Income and Developing Countries](https://blogs.imf.org/2018/03/22/managing-debt-vulnerabilities-in-low-income-and-developing-countries/)
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- [Delivering on the 2030 Agenda](http://www.imf.org/en/news/articles/2016/10/09/pr16455-delivering-on-the-2030-agenda)
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- [Financing For Development: The Way Forward](http://www.imf.org/external/pubs/ft/survey/so/2015/new041915a.htm)
- [Read the report](http://www.imf.org/en/Publications/CR/Issues/2017/02/28/Albania-Ninth-and-Tenth-Reviews-Under-the-Extended-Arrangement-and-Proposal-for-Post-44712)
- [Read the press release](http://www.imf.org/en/News/Articles/2017/02/24/pr1761-Albania-IMF-Executive-Board-Completes-Final-Reviews-of-the-Extended-Arrangement-Under-the-EFF)
- [Albania and the IMF](http://www.imf.org/external/country/ALB/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2017/02/27/na270217-albania-successfully-concludes-3-year-support-program_