The Minister of Finances and the Economy, Delina Ibrahimaj said that public debt is currently at 77%, but warned that the figure might go up by the end of the year.
“As we speak, the debt is at 76%-77%, and it is expected to reach 80% by the end of the year”, said Ibrahimaj on Now with Erla Mehilli on Euronews Albania.
The finance minister also said that the energy crisis is not expected to increase the debt, adding that fiscalization will have a positive influence on actually lowering public debt, as well as the deficit.
“The energy crisis is not expected to increase public debt further, meanwhile from 2022 we will enter into another phase of the fiscal consolidation, where debt and deficit levels are expected to gradually fall”, she said.
The minister also warned that energy prices will not return to pre-crisis levels.
“It is expected that energy prices will not return to the previous equilibrium, but a new equilibrium will be formed due to several structural factors that brought this crisis”, she said.
“It is expected that energy prices will not return to the previous equilibrium, but a new equilibrium will be formed due to several structural factors that brought this crisis”, she said, adding that a peak is predicted to take place within this year, and eventually fall by 2022.
But as previously declared by PM Edi Rama, energy prices will not rise for families and small enterprises.
“The social strata that cannot endure increasing prices will not be struck by the energy crisis. The government has guaranteed that the price will not go up and will guarantee electric supply. But this cannot be the case for all categories”, she said.
In addition, Ibrahimaj explained that salaries will begin to increase by 2022, predicting a 4.5% rise.
“The only impact that could arise in the future is if inflation continues to grow along with the price of basic products however, salaries have increased, average wages have been on the increase, and the government program predicts further growth”, concluded the finance minister.
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