February 27 (SeeNews) - The International Monetary Fund (IMF) said it has completed the last ninth and tenth reviews of Albania’s economic performance, which allows the authorities to draw a loan of 57.28 million special drawing rights ($77.5 million/73.2 million euro).
Under the 36-month loan deal signed in February 2014, the fund has extended 377.3 million euro to Albania, the IMF said in a statement late on Friday.
Albania's authorities should continue to pursue fiscal consolidation in 2017 and beyond in order to lower public debt to around 60% of the gross domestic product by end-2019, the fund said assessing positively the key structural reforms implemented by the authorities during the programme.
“Strong policy implementation under the Fund-supported Extended Arrangement has helped Albania achieve the objectives of correcting large macroeconomic imbalances and boosting economic growth, while maintaining stability in the face of external challenges," IMF said.
The fund also evaluated Albania's priorities for the post-programme period as appropriate.
"The banking system remains liquid and well-capitalized and recent efforts to strengthen the Bank of Albania's supervisory capacity and to address non-performing loans (NPLs) are encouraging," the IMF added.
In order to reduce high levels of non-performing loans Albania needs to ensure the implementation of the new bankruptcy legislation, the IMF recommended.
The fund added that the supervision of non-bank financial institutions should be increased, and high transparency and governance standards have to be maintained in developing capital market institutions.