High gov't debt ratio remains Albania's key challenge: Moody's

The high ratio of government debt remains the key challenge for Albania, local media reported Friday, citing the latest rating of the international assessment agency Moody's.

In its report, Moody's said it expected Albania's government debt ratio to drop to around 69 percent of gross domestic product (GDP) in 2017.

As a result, Moody's credit rating for Albania was set at B1 with a stable outlook while it left unchanged its evaluation of the debt level, according to the reports.

The Albanian government continues to rely on liquidity from the domestic banking system, which is already burdened by significant non-performing loans.

However, Moody's assessed that Albania's ongoing administrative, judicial reform efforts in pursuit of EU accession should lead to notable improvements in the business environment.

It also praised reforms in the energy sector, supported by the World Bank, noting it was expected to support the economic growth in the medium-term. Endit