Page 129 - SE Outlook Regions 2024

In the defence sector Albania is set to meet its Nato membership commitment, allocating 2% of its GDP in 2024.
Regarding taxation, there will be no VAT impact on the education sector and financial services, a move geared towards ensuring accessible education and a stable financial sector.
The budget has been strongly criticised by Albania’s opposition, who were unable to block its passage through the parliament because the ruling Socialist Party has an outright majority. Opposition MPs set off flares and started a small fire inside the parliament on November 20, in an attempt to prevent the vote on the budget.
Albania’s latest Eurobond – its sixth to date – was issued in June 2023, to high demand. The Eurobond has a five-year maturity and a total principal of €600mn.
Previously Albania issued its fifth Eurobond in November 2021, to support its budgets for 2021 and 2022. The €650mn, 10-year sovereign Eurobond was issued with a coupon of 3.50%, down from 3.625% for the previous Eurobond.
Albania’s public debt was hiked during the pandemic but has since been declining. The European Commission noted in November a moderation in reducing the public debt ratio due to increased interest costs, with the ratio at around 64.6% of GDP in 2022.
The country’s then finance minister, Delina Ibrahimaj, said in June that public debt is expected to fall below 60% of GDP by 2030.
Rating agency Moody’s said in October that while public finances face challenges due to the recent economic shocks, the public debt-to-GDP ratio is on a declining trajectory, expected to reach 62.3% by 2024.
6.2 Budget and debt - Bosnia & Herzegovina
Neither the state-level government nor the two local governments have yet adopted their budget plans for 2024. In previous years, it was usual practice for Bosnia to use budgets for the previous year until the politicians reached an agreement and adopted a new plan.
According to the state-level government’s budget framework for 2023-2025, the expected spending for 2024 is set at BAM1.3bn, excluding the foreign debt repayment, and at BAM1.25bn in 2025.
129 SE Outlook 2024 www.intellinews.com