The Albanian government expects to maintain stable domestic borrowing for 2025, with the draft budget forecasting new debt issuance of 50 billion lek, the same as this year.
By the end of September 2024, the country’s net domestic borrowing—calculated as new debt issued minus maturing debt—had reached 37 billion lek. Most of this was in long-term bonds, while short-term borrowing via treasury bills saw a decline.
The Albanian government also plans to issue a new Eurobond in 2025, estimated at 650 million euros, which will partially refinance a 2018 bond set to mature next year. A previous attempt to buy back part of this bond last year was met with limited investor interest, and the buyback concluded with just 133.3 million euros repaid.
Along with the Eurobond, the government is seeking long-term loans for specific projects, totaling 26 billion lek, and expects about 18.5 billion lek in budget support loans from international institutions.
The net increase in foreign borrowing is expected to be 8.2 billion lek (approximately 84 million euros), with most foreign debt allocated for repayment of existing obligations.
