Arrears Reach 146 Million Euros or 1% of GDP Decrease for VAT Refund

The Ministry of Finance of Albania announced that the stock of arrears (debts that public entities have not repaid on time to private operators for works and services contracts) reached at the end of June 2021 ALL 18.1 billion (EUR 146 million).

As of June, arrears accounted for 1% of expected GDP this year. This amount is not reported in the official public debt indicators.

Their stock has decreased by ALL 2 billion from the first quarter of the year, while there has been a better performance in the performance of VAT refund liabilities, but liabilities in infrastructure projects are increasing.

Of the total liabilities, ALL 9.7 billion or 53% of the total have central government entities, mainly the Ministry of Infrastructure and the Ministry of Defense.

The local government continues to have a stock of liabilities of ALL 6.6 billion or 36 percent of the total with a slight decrease from the first quarter of the year.

Liabilities for VAT refund were at the end of the 6-month period ALL 1.7 billion from ALL 5.9 billion that were these liabilities in the first quarter.

The Ministry of Finance reported to the Assembly that it has improved the monitoring of arrears, through intensive periodic monitoring of all outstanding liabilities of budgetary institutions.

Starting from December 2020, this monitoring and reporting which was previously performed on a quarterly basis through written reporting of institutions is now automatically generated by the Government Financial Information System (SIFQ) according to the provisions of instruction no. 37 dated 06.10.2020.

This format of reporting arrears in addition to increasing accuracy and providing timely data, is also a comprehensive format unifying the report for all units of general government.

Compared to the stock of liabilities reported for 6M of 2020, it results that: ü The total level of arrears is about 9.2 billion lek lower.

Reviewer overview

Arrears Reach 146 Million Euros or 1% of GDP Decrease for VAT Refund - /10

Summary

The Ministry of Finance of Albania announced that the stock of arrears (debts that public entities have not repaid on time to private operators for works and services contracts) reached at the end of June 2021 ALL 18.1 billion (EUR 146 million).

0 Bad!