In a live interview for Euronews Albania, an economic expert, Ardian Civici, explained the $190 million loan that the Albanian government decided to take from the International Monetary Fund.

The loan will have a 4.2% interest rate, which Civici considers relatively expensive, but justified in the current circumstances.

The November earthquakes and the COVID-19 pandemic made it harder for the government to collect revenues. For this reason, they have increased the public debt.

 Civici said that the mechanism chosen by the government is under the “rapid financing” instrument that is used for difficult situations.

100 countries in the world, including Serbia and North Macedonia from the region, have turned to this mechanism in the past.

“The government has three options for loans: the domestic market, the international market, where the government is seeking a €600 million Eurobond, and loans from international institutions, such as the IMF and EBRD”, he said.

When asked whether the loan for the National Theater is justified, Civici replied that this decision- making is of another nature, which, however, requires to be justified.

He reminds that the government should have prepared a third package for businesses.

“The first packages cover the social aspects. But I think that we need a third, exclusive package for businesses”, Civici said, adding that the Sovereign Loan or the easing of the financial burden is not enough.

Many businesses are facing bankruptcy. Civici said for Euronews Albania that although they have been allowed to open their activities, almost 20% of the businesses are closed.