External debt reaches 6.4 billion euros - Over 81% is in the common European currency. Impact, Eurobond
The external debt that the government has taken on to meet its financing needs, mainly related to investments in infrastructure and public services, amounts to 6.43 billion euros in the first quarter of 2025.
In a decade, from 2015 to now, the government has progressively increased its external borrowing. The lowest value of the debt stock is recorded in 2015 at 3.57 billion euros, while the highest value is recorded in 2025.
The reason for this increase was the issuance of the last Eurobond worth 650 million euros in February of this year and the increase in the confidence of foreign creditors in the Albanian economy.
But how is it divided by currency? Official data from the debt statistical bulletin for the first quarter of this year show that 81.38% is dominated by the European currency Euro, or about 5.2 billion euros, registering an increase of 3.4% from last year,
In second place is the US dollar, which accounts for 9.3% of the government's total external debt stock.
Also, a significant weight is occupied by the SDR, with 6.32% being an international reserve asset. The SDR is not a currency, but its value is based on a basket of five currencies - the US dollar, the euro, the Chinese renminbi, the Japanese yen and the British pound.
While other currencies such as the Saudi Arabian SAR, the South Korean won (KRW), the Kuwaiti dinar (KWD), and the Japanese yen (JPY) occupy a very small percentage.
If we refer to external debt according to creditors, it turns out that 2.9 billion euros are Eurobonds and the rest are private creditors.
In relation to Gross Domestic Product, the stock of external debt is recorded at 24.37% for the period January-March 2025, with a slight increase from last year, but the lowest percentage value compared to previous years. The highest value results in 2021 with 36.45% of GDP.
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