Albania Financial Markets Space
By Andi Memeti, Deputy Minister, Ministry of Finance, Albania
Albania’s fiscal and debt management framework is anchored in a medium-term macro-fiscal strategy aimed at ensuring debt sustainability, compliance with fiscal rules, and preservation of macroeconomic stability. Recent fiscal outcomes confirm the effectiveness of consolidation efforts and prudent public finance management.
In 2024, the general government recorded a primary surplus of 1.4% of GDP, while the public debt-to-GDP ratio declined by 3.4 percentage points to 54.2%, marking the lowest level since 2008. This improvement reflects sustained fiscal adjustment, nominal GDP growth, and effective cash and debt management. The strengthening of Albania’s fiscal position has been recognized by international rating agencies, with Standard & Poor’s and Moody’s reaffirming sovereign ratings at “BB” and “Ba3”, respectively, both with stable outlooks.
Public debt developments in 2025 remained aligned with budgetary targets and the Medium-Term Debt Management Strategy (MTDMS). As of end-September 2025, total public debt stood at approximately ALL 1,400.8 billion, equivalent to 53.45% of GDP, representing a reduction of over 20 percentage points compared to the 2021 peak of 74.1%. Gross financing needs for 2025 are estimated at ALL 62.9 billion, with net domestic borrowing of up to ALL 50 billion and net external borrowing of ALL 12.9 billion. External financing includes investment project disbursements and budget support, notably EU funding under the Western Balkans Growth Plan.
In 2026, public debt is expected to decline to 53.6% of GDP, from a projected 54.1% in 2025, fully consistent with the “debt brake” rule stipulated in the Organic Budget Law. The downward trajectory is projected to continue, with debt declining to 52.2% in 2027 and approximately 46.4% by 2031. These projections indicate that fiscal consolidation is structural in nature and not driven by temporary or one-off factors.
Albania maintains an active presence in international capital markets, having issued seven Eurobonds since 2010, of which four remain outstanding with maturities in 2027, 2028, 2031, and 2035. The most recent issuance was in February 2025—a 10-year Eurobond of EUR 650 million characterized by strong investor demand, with subscriptions exceeding EUR 2.5 billion.
For 2026, net financing needs are projected at ALL 55.3 billion, primarily financed through domestic government instruments (ALL 45 billion), complemented by external financing of ALL 10.3 billion. No international market issuance is planned for 2026, the next benchmark Eurobond issuance is expected in 2027 where are Eurobond redemptions. Debt management will continue to prioritize cost-risk optimization, increased transparency through the publication of annual borrowing plans, and further development of the domestic government securities market under the updated MTDMS.