TIRANA, Nov 19 /ATA/ Budget deficit and public debt were under discussion on Tuesday at parliamentary committee on Economy and Finances as part of the discussion of 2020 draft budget.
Minister of Finance and Economy, Anila Denaj, pointed out that the central government’s debt to GDP ratio is on a downward trend as of 2016 with end of 2019 ratings indicating a decrease of 2.5pp in central govt.’s debt to GDP proportion.
In line with the downward trajectory of debt, the budget deficit has also fallen below 2%, namely: in 2018 to 1.6% and in 2019 to 1.9% relative to GDP. For 2020, the projection continues to remain at 1.6%.
Minister Denaj mentioned the fact that in recent years the average cost of debt has decreased significantly, despite increase in the long-term debt stock in the portfolio.
The Minister said that in the coming year and in the medium term, we will press on with activities targeted at reducing the risk of refinancing and the interest rates on domestic debt. In this regard, extending the debt life by further reducing the concentration of short-term securities in the portfolio will remain a priority.
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