IMF lends Albania loan worth $40M

The Executive Board of the International Monetary Fund (IMF) completed the eighth review of Albania's economic performance under the Extended Fund Facility (EFF), launching the immediate disbursement of 28.65 million SDR (40 million U.S. dollars), IMF said Thursday.

The completion of the review under EFF agreement brings total disbursements under the IMF arrangement to 238.14 million SDR.

According to the assessment, Albania has met the performance criteria with comfortable margins, while it noted that good progress has been made on the structural reform agenda.

IMF further said that the Executive Board approved a 36-month arrangement under the EFF for Albania on Feb. 28, 2014 in an amount equivalent to 295.42 million SDR or 212.1 percent of the country's current quota in the Fund.

IMF also said that Albania's economic recovery is strengthening, supported by large energy-related investments and a gradual recovery in domestic demand.

"The current account deficit is widening due to import-intensive foreign direct investment. Inflation is recovering from very low levels, although underlying inflationary pressures remain weak. Despite substantial monetary easing, credit growth remains sluggish, constrained by the still sizable overhang of nonperforming loans on bank balance sheets,"the agency said.

Following the news, Albanian Minister of Finance Arben Ahmetaj said the IMF decision was a sign of trust in the Albanian economy and its financial system.

Source : XINHUA