The new strategy focuses on reducing debt servicing costs, minimizing exposure to risks, and further developing the government securities market, in accordance with the macro-fiscal framework and the monetary policies of the Bank of Albania.

The Minister of Finance, Petrit Malaj, announced today that the strategy aims to improve the management of public debt and the financing of the budget deficit for the 2025–2029 period. Its objectives include reducing costs, eliminating potential risks, and supporting further development of the government securities market.

During the period 2022–2024, central government debt pursued a downward trajectory, decreasing from 64.1% to 54.2% of GDP. Approximately 90% of refinancing needs were covered by the domestic market, with a particular focus on the issuance of long-term securities.

In 2024, gross borrowing reached 404.2 billion ALL, of which 93.6% was secured from domestic sources.

At end of 2024, central government debt stood at an estimated 1,365.0 billion ALL, equivalent to 54.2% of GDP, pursuing the downward trend initiated in 2022. Fiscal policy aims to preserve this reduction in the debt-to-GDP ratio in the coming years, in compliance with fiscal rules and principles, with the aim of reaching a 45% threshold.

The government program recently presented to Parliament cites reducing public debt to around 50% of GDP as a primary strategic objective.

The Ministry of Finance plans to continue implementing policies aimed at extending debt maturities, reducing the issuance of short-term securities, and promoting a more balanced distribution of debt maturities.

The 2025–2029 strategy plans to rely mainly on domestic market for financing through Treasury Bills and Bonds, balancing costs and risks. Albania’s stable credit ratings from Moody’s and Standard & Poor’s reflect its economic progress and institutional reforms despite structural challenges.
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