Finance: Budget Review 2010, cut costs
Ministry of Finance provides intervention and changes in the 2010 budget in order to cut costs. The main cause is believed to have taken loans in foreign banks which are more expensive due to the change in growth rate of the euro in relation to the Albanian currency. “We intend to revise the 2010 budget with spending cuts, but the final decision is not taken yet,” said one official quoted by the New Economy.
Albania has received loans last year to 250 million euros from foreign banks. The main weight in this very moved to continue funding the project for construction of the Durres-Kukes. EURIBOR parameters at the time of withdrawal of credit were 9.65 and now this indicator could rise to 10.65.
During the second half of 2009 and the first months of 2010, the euro has seen a significant increase compared to the Albanian national currency. Income from remittances, the main source of funding for many Albanian families shrank this year as a result of the financial crisis in countries where they are located. Premier Berisha and government officials have named the 2010 budget during discussion in Parliament as “bold, but realistic” touch of country denying financial crisis.