Albania Should Further Strengthen Economic Fundamentals To Weather Global Crisis – IMF

Albania’s integration into the global markets is limited, which is a buffer for the global financial crisis, but the economy is not immune, the IMF said in a statement after the fund’s final review mission in Albania.

Exports are expected to decline, remittances from migrants could also be affected and investor may reassess risks, the IMF said.

“After the IMF program expires, the authorities are urged to commit to a clear fiscal rule to anchor budget policy, such as an appropriate expenditure, deficit, or debt ceiling,” the statement said.

IMF's present three-year funding programme for Albania, ending in January, is worth 17.05 million special drawing rights (SDR) ($25.4 million/19.9 million euro). It is the IMF's sixth programme for the impoverished Balkan country. The programme is supported by the combined Poverty Reduction and Growth Facility (PRGF) and Extended Fund Facility (EFF).

The fund recommended the Albania keep the 2009 budget deficit at below 4.0% of the county’s gross domestic product (GDP).

In 2009 draft budget, yet to be approved by the parliament, Albania set a budget deficit of 4.2% of GDP.

(1 SDR= 1.1676 euro)