Albania seeks loan to cover budget deficit

Albania’s finance ministry said on Thursday it would borrow 250 million euros (315 million US dollars) from two foreign banks to cover its budget deficit.

The ministry said in a statement it chose Deutsche Bank and Greece’s Alpha Bank for the loan from seven bidders who offered to lend the money. 

The ministry did not say on how much it will cost to borrow the money to fund mainly the country’s budget deficit which is expected to be 4.2 percent of its gross domestic product.

Albania has previously borrowed 230 million euros (138 million U.S. dollars) from Alpha Bank and the National Bank of Greece to finance its 2008 budget deficit.

The International Monetary Fund, which ended its final supervisory agreement with Albania on Jan. 31, warned the country recently it should be prudent in its spending ahead of its general election on June 28 or risk possible threats to its macroeconomic stability.

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