In the first quarter of 2015, the total foreign debt of Albania was 6,997.4 million EUR. During this period, the debt stock rose by 331 million EUR, while compared to the first quarter of 2014 it increased by 757 million EUR. Almost 81% of the debt stock is long-term loans, while the rest is short-term debt of the banking sector.
Gross foreign debt (million EUR)
*First Quarter 2015
Source: Bank of Albania, Statistical Report
Comments and Analyses: Open Data Albania
*First Quarter 2015
Source: Bank of Albania, Statistical Report
Comments and Analyses: Open Data Albania
The government holds the majority of this debt (41%). The rest is owed by banks (18%), other sectors (17%), the central bank (1%) and inter-company loans (23%).
Foreign Debt by Sector (2015)
*First Quarter 2015
Source: Bank of Albania, Statistical Report
Comments and Analyses: Open Data Albania
*First Quarter 2015
Source: Bank of Albania, Statistical Report
Comments and Analyses: Open Data Albania
While the gradual increase of foreign debt is normal and healthy, when this increase is much faster than GDP or investment growth, then this can become problematic, since the debt payments can increase dramatically. Albania’s GDP has grown by 2-3% in the last years, while the gross foreign debt has increased by 19% on average every year.