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COVID-19: IMF Approves US$190.5 Million For Albania

Posted by Osei Agyemang

Albania was consistently advancing most definitely until November 2019 when a seismic tremor squashed everything in the country.

That was not all, as the worldwide pandemic also added to their woes and made noteworthy misfortunes and disturbances to Albania’s economy.

As a result of these difficulties, the IMF went to their aid and affirmed US$190.5 million budgetary help under the Rapid Financing Instrument for the country.

The prompt test is to react adequately to COVID-19 by fortifying social insurance and relieving the impacts on the parts and families generally influenced by the emergency.

About the Rapid Financial Instrument (RFI), it gives quick monetary help to member countries confronting a pressing parity of payments need, without the requirement for an undeniable monetary program or surveys.

The Instrument additionally offers help to meet a wide scope of earnest needs, including those emerging from product value stuns, catastrophic events, strife and post-struggle circumstances.

This Financial help by the IMF is given out as outright purchases.

Mr. Tao Zhang, Deputy Managing Director and Acting Chair of the IMF, gave the accompanying explanation:

“The earthquake on November 26, 2019 and the ongoing global COVID-19 pandemic have caused significant hardship and disruption to economic activity in Albania.

The two consecutive shocks are expected to create large fiscal pressures and an urgent balance of payments need amid a tightening of global financial conditions.

“The authorities’ policy response to the shocks has been timely and targeted. In response to the COVID-19 pandemic, the authorities have put in place stringent containment and mitigation measures and have announced a fiscal package of 1.4 percent of GDP to help ensure medical care and support to affected households and businesses.

The Bank of Albania’s recent decision to reduce the policy rate is also welcome.

“A sizeable increase in the fiscal deficit of 2020 is necessary to limit the impact of COVID-19. It will be critical to ensure adequate spending for healthcare and support for the people and firms that are hurt by the COVID-19 pandemic.

The Albanian authorities remain committed to ensuring macroeconomic stability. Once the shocks have been overcome, it will be important to keep public debt on a clear downward path.

“The Fund stands ready to support Albania to combat the pandemic and help the economy to recover.”

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