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IMF warns Albanian gov't of potential risks in giving concessions on initiatives

Xinhua, March 2, 2016 Adjust font size:

The International Monetary Fund(IMF) said the Albanian government should make a detailed analysis before giving concessions on its initiatives, and fully understand the future dangers and obligations, the Albanian Daily News reported Wednesday.

On the VAT (value added tax) concession proposed by the government, the IMF said this should not be the highest priority in the tax reforms, and it was not visible that the revenue division formula, which is part of this partnership, was the most advantageous part of this government in the financing terms.

As public finances grapple with low growth rates, the Albanian government is considering awarding a 10-year concession on the VAT.

Speaking of public-private partnerships, which are a way to fund public investments, Jens Reinke, head of the IMF in Albania, said the IMF wants to ensure that the government has a complete understanding of the potential risks, and can analyze the suitability of a partnership or concessions in comparison with other forms of financing.

When asked about the IMF's view on Albania's economic situation, he said that the IMF saw positive developments, although the economy is growing at a slow pace.

"This year it will be dominated by higher foreign investments and by more trust from domestic consumers," he said. Endi