IMF gives 174m euros emergency support to Albania

The IMF Executive Board approves $190.5m as emergency support for Albania to cope with the Javido-19 pandemic.

• Termeti on November 26th, 2019, and the World Pandemia of David-19 have caused significant losses and disruptions in the Albanian economy.

• To address the urgent need of the balance of payments, The IMF has approved 190. $5m (174m euros) as financial assistance under the Fast Financing Tool (RFI).

• The immediate challenge is the effective response to David-19 by strengthening health care and softening the effects of the crisis for those sectors and families that have been affected the most.

The IMF Executive Board approved today 139.3m SDR (about $190.5m, or 174m euros, 100 per cent of the quota) emergency support for Albania under the Fast Financing Instrument (RFI) to cope with the urgent payment balance needs stemming from the outbreak of theCondov-19 pandemic and after the strong earthquake that struck the country earlier.

The RFI offers quick financial assistance to member states facing an urgent need to cover the balance of payments, without needing an economic or revision programme. The instrument can provide support for a host of urgent needs, including those stemming from the shocks of stock market goods, natural disasters, conflicts and post-conflict situations. Financial assistance under the RFI instrument is provided in the form of immediate delivery.

Because of two consecutive shocks (the temperature and pandemic Covid-19) economic activity in Albania could suffer a contraction in 2020, to be followed by a recovery in 2021. In view of the ongoing development situation, these predictions are subject to high uncertainty and lower risk.

At the end of the board's executions, Mr. Tao Zhang, deputy director general and acting chairman issued the following statement. The November 26th, 2019 earthquake and the current David-19 pandemic have caused significant difficulties and economic disruptions in Albania. These two successive shocks are expected to create major fiscal pressures and an urgent need for balance of payments against the tightening of global financial conditions.

The authorities' response to the shocks has been at the right time and direction. In response to the Cavido-19 pandemic, authorities have taken austerity measures to control and slow the spread and have announced a 1.4 per cent fiscal package of GDP to ensure adequate health care and support for households and affected businesses. The Bank of Albania's recent decision to lower the key interest rate is also welcome.

“to limit the impact of Covid-19 is necessary to significantly increase fiscal deficit in 2020. It is of critical importance to secure adequate costs for health care and support for citizens and firms that have been damaged by the Cardi-19 pandemic. Albanian authorities remain committed to ensuring macroeconomic stability. When such shocks are overstepped, it will be important for the debt to become a clear crash trajectory. “Fond is ready to help Albania fight pandemic and help economic recovery”. T Ch/