External Debt Down to 21.5% of Nominal GDP in H1
Albanian Daily News
Published December 23, 2017
bAt the end of the first half of 2017, Albania's next external debt was estimated at 21.5 percent of nominal GDP, down by around 4.1 percentage points compared with the same period of the previous year.
Bank of Albania said in its External Debt Report on Friday that net external debt against goods and services export was estimated at 56.2% at the end of the first half of the year, decreasing around 19 percentage points in annual terms.
The increase in annual income inflows from the goods and services export is sufficient to cover the short-term external debt, according to the Bank of Albania.
Official data show that the ratio of short-term external debt and the annual export of goods and services has signaled upward trend.
At the end of first half of 2017, the ratio of gross external debt and the annual export of goods and services was estimated at 266.3%, or around 30.3 percentage points higher than a year ago.
The export of goods and services represents a direct and continuous source of foreign currency inflows into an economy. That's why the government has recently addressed a series of fiscal incentives in a bid to boost trade exchanges and exports in particular, as well as production and a series of other sectors.
According to central bank, the flow of fiscal revenue helps build two other indicators that measure the repayment capacity of a country. These flows must suffice to cover a certain portion of the gross external debt and of central government external debt stock. The first indicator monitors the space that the central government enjoys to avoid credibility loss of the country with the foreign creditors in times of crisis, whereas the second indicator monitors the risk that fiscal revenues are redistributed by public spending in fund for the amortization of the public external debt. The ratio of the gross external debt against fiscal revenues is estimated at 253.2%. This indicator has narrowed 21.8 percentage points compared with a year ago. The indicator of the central government external debt against fiscal revenues has shown the same dynamic. The 109.4% registered ratio stands around 7.8 percentage points lower in annual terms.