TIRANA, July 24 /ATA/ Prudent management of public finances is contributing to a safer and more sustainable debt outlook for Albania. During the first six months of 2026, the country recorded significant improvements in key public debt risk indicators.
According to Finance Minister Petrit Malaj, these achievements reflect the impact of a responsible fiscal policy and proactive debt portfolio management, helping to further strengthen Albania’s macro-fiscal stability.
According to Malaj, the first half of the year saw a reduction in the share of short-term debt, lowering the need for refinancing over shorter periods. At the same time, the average maturity of domestic debt increased, helping to spread financial obligations more effectively over time and reducing exposure to market fluctuations.
Another improved indicator highlighted by the minister is the reduction in the share of debt maturing within one year, a development that further strengthens public finance sustainability and lowers refinancing risks.
Data published by the Ministry of Finance show that Albania’s public debt-to-GDP ratio has declined steadily in recent years. From 73.9% in 2021, public debt fell to 64.1% in 2022, 57.6% in 2023, 54.2% in 2024, and 52.9% in 2025.
At the end of the second quarter of 2026, public debt stood at 49% of GDP, while the year-end forecast is projected at 52.8%. This represents a sustained reduction of 21.1 percentage points compared with the 2021 level.
Another key indicator is the extension of the average debt maturity period. According to the Ministry of Finance, the average maturity has increased from 2.2 years in 2021 to 3.3 years as of June 2026, representing an increase of 1.1 years. This translates into lower short-term refinancing needs and a more stable profile for the government’s debt obligations.
Malaj also emphasized that foreign currency-denominated debt remains within the limits set out in the Medium-Term Debt Management Strategy, helping to reduce exposure to risks arising from exchange rate fluctuations.
“These results are the outcome of a responsible fiscal policy and active debt management, which strengthen market confidence, reduce financing risks, and create greater room for investment in the country’s development, the economy, and citizens’ well-being,” the Finance Minister said.
According to the Ministry of Finance, the improvement in Albania’s public debt profile is part of the objectives of the Medium-Term Debt Management Strategy, which aims to secure financing at the lowest possible cost over the medium and long term while keeping fiscal risks under control.
In recent years, the Albanian government has pursued an approach focused on extending debt maturities, reducing the share of short-term instruments, and carefully managing foreign currency exposure. The aim has been to strengthen the sustainability of public finances while creating fiscal space to finance priority investments and support the country’s economic development.
/sm/
