Albania Fiscal Sustainability and Growth Development Policy Financing

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The development objective of the Fiscal Sustainability and Growth Development Policy Financing in Albania is to support Albania in: (i) strengthening the transparency and sustainability of its public finances; (ii) enhancing finance for recovery and growth; and (iii) supporting key sectoral opportunities for sustainable growth. As a pre-condition for a resilient recovery, the first pillar of this operation supports Albania in adopting key reforms strengthening the transparency and sustainability of its public finances. It reinforces Albania’s revenue raising capacity to build fiscal space and bring down government debt. This pillar supports publication of Albania’s first full tax expenditure review and institutionalization of regular publications going forward. Fiscal transparency can play an important role in disciplining policy and ensuring that budgetary resources are deployed more effectively, which is particularly valuable in the current crisis context of unprecedented fiscal measures to support the economy. The second pillar assists Albania in enhancing finance for recovery and growth. To fund the investments needed to upgrade Albania’s growth model, this pillar strengthens the mobilization of private capital while contributing to sustainable business growth and job creation. This pillar bolsters Albania’s non-performing loans (NPL) resolution framework. The third pillar supports key sectoral opportunities for sustainable growth. The aim is to enable the creation of more and better jobs, by strengthening the vitality and sustainability of Albania’s growth model. First, by broadening access to high-speed internet in rural areas, this operation supports investments to rebuild better by connecting more Albanians with the opportunities of the digital economy. Second, by strengthening sustainable management of Albania’s forest resources, this pillar protects key economic sectors that rely on the richness of Albania’s natural landscape assets and services, including the tourism sector and Albania’s large agricultural sector.

World Bank Group

Project

Broadband, Hotel, Raw Materials, Government, Telecommunications