The depreciation of the euro and the dollar in the Albanian foreign exchange market has had a positive impact on reducing public debt. The latest report from the Ministry of Finance shows that public debt at the end of June dropped to 54.02% of Gross Domestic Product, down from 54.21% at the end of last year.

In absolute terms, debt stood at €14.1 billion, compared to €14.2 billion in March of this year.
External debt fell from €6.5 billion at the end of March to €6.2 billion in June, while domestic debt increased from €7.7 billion to €7.8 billion.

The depreciation of currencies, mainly the euro, has made foreign debt cheaper, as repayment installments have been lower. Additionally, the reduction in external debt was also influenced by the repayment of past loans, including the Eurobond issued at the beginning of the year.

Albania’s public debt is primarily concentrated in budgetary support, as well as in the transport, electricity, and water supply and sewerage sectors.