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The level of public debt reached record levels of 77.8% of Gross Domestic Product at the end of 2020, the highest rate ever recorded for Albanian finances, reflecting the severe consequences of the crisis.
According to the data of the Ministry of Finance, the total debt stock reached ALL 1.22 trillion last year, from 1.11 trillion in 2019, marking an increase of about ALL 111 billion.
The main reasons for the increase in public debt in the country are mainly related to the impact of the Covid-19 pandemic, which continues to exert great pressure on public finances.
The large increase in budget expenditures to cover the needs of health emergencies further deepened the budget deficit in historical records to 110 billion ALL at the end of 2020, which subsequently brought this high debt rate.
But, despite the jump to 77.8%, the realization of this indicator was lower than the expectations of the government, which predicted a rate of 79.9% of it in relation to Gross Domestic Product.
Such a worrying rate of public debt was previously warned by foreign financial institutions such as the International Monetary Fund, whose expectations in the last report spoke of a scenario where the level of debt could reach 82.2% of GDP.
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