The World Bank Group has approved a $120 million loan to support Albania in enhancing fiscal resilience and promoting green development. This is the second loan in a series aimed at boosting the country's fiscal and environmental sustainability.
The program targets three main areas: improving government and household resilience, advancing the energy market framework while increasing renewable energy and efficiency, and protecting the environment to reduce Albania’s carbon footprint. It aligns with the Country Partnership Framework for 2023-2027, demonstrating the World Bank's commitment to Albania's sustainable growth.
Richard Record, Acting Country Manager for Albania at the World Bank, stated, "We are committed to supporting Albania in its journey towards a more resilient and sustainable future." He emphasized that this financing would help address significant challenges in energy and environmental protection while enhancing government capacity to manage fiscal risks and support vulnerable populations.
This initiative also supports Albania's aspirations for European Union membership, its Economic Reform Program for 2024-26, and climate commitments under the 2015 Paris Agreement. Key focus areas include strengthening fiscal sustainability, improving social assistance systems, and reforming the energy sector.
Albania's macroeconomic policy framework is considered stable, with manageable fiscal deficits, decreasing public debt, stable monetary policy, and macroprudential measures.