The government aims to return the level of public debt to the downward trajectory in 2021, at a value of about 78.6% of gross domestic product (GDP) from about 80.9% expected in 2020, a parameter in accordance with legal provisions, the Minister of Economy and Finance Anila Denaj said.

The main objective of the government for fiscal consolidation or in other words the reduction of public debt consists of several key aspects such as fiscal deficit of 6.5% of GDP, decreasing compared to the expected 6.8% of GDP this year, Minister Denaj said during the presentation of the 2021 draft budget at the Parliamentary Committee on Economy. 

According to Minister Denaj, through a more efficient management of the borrowing process, it has been possible to reduce the refinancing risk and reduce the interest rate risk. The current level of central government debt, according to the data of the most recent quarter (September 2020) is estimated at Lek 1,260,313 million or 79.7% of GDP.

“The increase in the debt stock has come mainly from the measures taken within the management of the situation created by the spread of the Covid-19 pandemic, as well as from the issuance of the Eurobond in June 2020,” Denaj noted.