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Press Release: Statement at the Conclusion of an IMF Review Mission to Albania
November 25, 2014
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IMF COMMUNICATIONS DEPARTMENT |
| Media Relations |
|---|
| E-mail: media@imf.org |
| Phone: 202-623-7100 |
November 25, 2014
IMF COMMUNICATIONS DEPARTMENT |
| Media Relations |
|---|
| E-mail: media@imf.org |
| Phone: 202-623-7100 |
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.
An International Monetary Fund (IMF) mission led by Nadeem Ilahi visited Tirana during the period November 17 - 25, 2014 to conduct discussions on the second and third reviews of the arrangement under the Extended Fund Facility (EFF). At the end of the visit, Mr. Ilahi made the following statement:
“Albania's economic program is on track. The IMF team reached staff level agreement with the authorities on the policies needed to complete the second and third reviews of the EFF.
“Economic growth is projected at around 2 percent this year, boosted by strong growth in exports and petroleum production, clearance of domestic government arrears, and a modest recovery in domestic demand. Output still remains below potential, however, and inflation is expected to remain low.
“Fiscal performance during the second and third quarters of 2014 was broadly in line with program targets. The authorities remain committed to achieving the fiscal deficit target for 2015 as well as limiting expenditure within the programmed envelope. Despite significant energy-related spending, the 2015 budget is expected to achieve a reduction in public debt as a share of GDP for the first time since 2010.
“Inflation expectations appear well-anchored and monetary policy should continue to be supportive of economic recovery, consistent with the Bank of Albania’s mandate of maintaining price stability. Credit growth is recovering but remains low, affected by high non-performing loans and weaknesses in contract enforcement.
“Electricity reforms are urgently needed to end the sector’s fiscal burden. The authorities have begun to take important first steps in implementing their electricity sector reform plan, developed in consultation with the World Bank. This includes curbs on electricity theft, proposals to restructure tariffs by end-2014, and institutional reform of the government-owned enterprises involved in the sector. Staff welcomes the plan to compensate the poor through targeted cash compensation.
“The IMF staff mission supports the authorities’ policy and structural reform efforts and views them as providing a credible basis for restoring economic growth and maintaining macroeconomic and financial stability.
“The Executive Board of the IMF is expected to discuss the second and third reviews under the EFF in late January 2015. Approval of the reviews would enable the disbursement of SDR 47.1 million (about euro 53 million). Albania's 36-month EFF arrangement was approved on February 28, 2014 (see Press Release 14/81).”
