Albania is not immune from International Financial Crisis – IMF says

Tirana, Nov. 11, 2008 (AENews) – “Albania’s still limited integration into global markets currently provides an important buffer, but the economy is not immune: export growth is expected to decline from recent heights, remittance payments could be affected, and investors may reassess risks”, IMF said in a statement today.

International Monetary Fund concluded its last negotiations with Government of Albania and asked for lower than projected budged deficit for the next year.

“The mission recommends to contain the 2009 deficit at below 4 percent of GDP”, IMF said in a press conference today. Albania will close its 17 year old advising agreement with IMF in January.

“Beyond macroeconomic necessity, the mission would recommend that any cut in contribution rates await comprehensive pension reform that would strengthen the link between contributions and benefits and provide important incentives for self enforcement”, – IFM said.

This would help combat informality, improve voluntary self compliance, and hence allow the authorities to rely less on administratively burdensome regulations that currently create significant scope for discretion and corruption. 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.

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