Every Albanian citizen “inherits” debt of $2.300 from government

Tirana, 7 August 2010 (MIA) - The opposition Socialist party of Albania alarmed on growth of public debt, which reached remarkable figures.

- The current level of public debt reaches US$ 7.3 billion, which is unimaginable figure for our country. Every one of us, every Albanian citizen today has debt of US$ 2.300. Even every child born this year inherits the debt of Berisha's government amounting to US$ 2.300, MP Ilir Bekqa presented party's position.

He said that there are three reasons that cause the growth of public debt: incompetence, irresponsibility and corruption of the government, MIA reports from Tirana.

Socialists foresee that public debt in 2010 will increase for additional US$ 480 million, which "brings Albanian economy on unsafe and risky road." sk/fd/11:38

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IMF to open monitoring office in Athens: official

Athens, 6 August 2010 (MIA) - The International Monetary Fund will soon open a fact-finding office in Athens, where it is already overseeing a crash three-year Greek austerity programme, a senior IMF official said on Friday.

"An office will operate in Athens in a month to six weeks at the most," the IMF's deputy European director Poul Thomsen told To Vima daily.

"Its role will be to collect data, analyse it and discuss it with the Greek government," said Thomsen, who also heads the IMF's joint team with the European Union and the European Central Bank auditing Greece's application of reforms undertaken in return for a massive default-saving loan.

The joint EU-IMF mission this week completed a two-week audit of Greek finances to determine whether a nine-billion-euro (11.9-billion-dollar) slice of the loan will be released as scheduled next month.

A total sum of EUR110 billion over three years was earmarked this year to rescue Greece from bankruptcy.

The inspectors said on Thursday that Greece had made "considerable" and "impressive" progress on slashing state spending en route to eliminating a public deficit that last year stood at over four times the allowed EU limit.

But they noted that "key challenges" remained ahead of a next release of funds in December, by which time Greece must begin the deregulation of the energy sector which is currently dominated by state operator PPC.

Greek officials must also present proposals on overhauling the ailing state railway group OSE which the mission said is buried under debts of EUR10 billion, AFP reports.

The reforms have sparked six general strikes and protests this year which are set to pick up again after the summer lull. Unionists at both the PPC and OSE have pledged to fight against the government's cost-cutting plans.

On Friday, Thomsen advised Greek authorities to "pick their battles" with unions by focusing on sectors promising immediate relief to the recession-hit economy, such as the important tourism industry.

"Undoubtedly there will be vested interests that will react, you need to think smart," he said.

In another interview with Le Monde, Thomsen ruled out the prospect of Greece restructuring its mountain of debt, estimated at about EUR300 billion, or 133.2 percent of output this year.

"This is not an option for the Greek government, and markets are also in the process of comprehending that this is not the issue. Greece's problem is not so much the weight of its debt, but its lack of competitiveness. Its main challenge is to achieve growth, create jobs and become competitive within the eurozone," the Dane said.

"When Greece completes its structural reforms we will see the weight of this debt lessen considerably," he said.