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Albania risks “being burdened with debt” like Greece, Eurobond managers, 500 million euros risked: Cannot pay off the debt. Beware, investors!

The swindles by the Prime Minister Edi Rama, the dismissed Minister of Finance ArbenAhmetaj and the Governor of the Bank of Albania GentiSejko with the forced decline of the Euro and the fictitious growth of the Albanian Lek, deceptive financial statements sent to the EU, risk throwing Albania into bankruptcy.
A 159-page report published by the Central Bank of Ireland warned investors that Albania may fail to settle its debt obligations. An investment in a developing country such as Albania is subject to much greater risks than an investment in a more developed country and with more developed political and legal systems: Investors should pay meticulous attention to risk assessment and should decide whether, in light of these risks, such investment is appropriate for them. Albania is on the verge of bankruptcy.
Albania risks becoming like Greece of a few years ago, where, because the country was burdened with debts and crisis, the investors were warned to stay away from it.
The swindles by the Prime Minister Edi Rama, the dismissed Minister of Finance ArbenAhmetaj and the Governor of the Bank of Albania GentiSejko with the forced decline of the Euro and the fictitious growth of the Albanian Lek, deceptive financial statements sent to the EU, risk throwing Albania into bankruptcy.

Thus, investments in the Albanian government’s debt have been assessed to have a high degree of risk in the prospect of joint managers of the four banks for issuing Eurobonds worth 500 million euros in November 2018.
The prospect, a 159-page report published by the Central Bank of Ireland warned investors that Albania may fail to settle its debt obligations. An investment in a developing country such as Albania is subject to much greater risks than an investment in a more developed country and with more developed political and legal systems.
These risks include the economic instability caused by such factors as: the narrow export base; high electricity imports; high fiscal and current account deficits; Foreign Direct Investment (“FDI”) dependency; high unemployment; tense political, economic, social, legal and regulatory environment.
Managers advise foreign investors that they are at hazard in Albania, even in case of government change. Usually, new governments in Albania challenge the policies of the former government. Apart from economic and political factors, Albania’s legal infrastructure and regulatory framework are still under development.
“Investors should pay meticulous attention to risk assessment and should decide whether, in light of these risks, such investment is appropriate for them”, says the report of the Eurobond managers.
They recommend that, in general, investments in developing countries, including Albania, are only suitable for sophisticated investors who are able to accurately estimate the impact of these risks. Investment in Albania’s debt may also be adversely affected by developments in the international economy, especially by neighboring countries including Greece, Italy and Turkey.
The Greek financial crisis, which began in June 2015, led to withdrawal from the subsidiaries of Greek banks operating in Albania. The occurrence of similar events in the future may negatively affect the Albanian economy directly, say the managers.
The management banks that led the Eurobond issuance of Albania came to the conclusion that Albania may not be able to settle its public debt and as a result may not be able to pay the principal and interest.

And such a conclusion shows that Albania is on the verge of bankruptcy.

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