Record, 2 billion euros of undrawn loans, EU funds not used

2026-05-04 12:57:56, Ekonomi CNA

The value of foreign loans approved but not yet used by Albania has experienced a strong increase in recent years, reaching a record figure of around 2 billion euros at the end of the first quarter of 2026, according to official data from the Ministry of Finance.

Official data on external debt show that the total undrawn amount has marked a continuous increase, doubling compared to 2022, when this value was calculated at 932.86 million euros.

Among the main financial institutions, the European Union holds the largest share with around 581 million euros and the International Bank for Reconstruction and Development (IBRD) with 362.47 million euros. A significant increase is also observed in bilateral loans, which amount to 578.81 million euros, with Germany remaining the main partner with around 268 million euros of approved loans awaiting disbursement.

This high volume of undrawn debt, which is estimated at precisely 1,973 million euros, indicates possible delays in the implementation of capital investment projects, while the state may be exposed to commitment fees associated with these unused funds.

Unlike institutions such as the IBRD or EBRD that finance ongoing projects, the stock accumulated with the EU is mainly related to the Western Balkans Growth Plan. This plan foresees a financial support for Albania of 922 million euros until 2027, where a significant part comes in the form of loans with very concessional conditions for budgetary support and infrastructure investments. So far, the value of loans approved by the EU growth plan is 578.8 million euros which were activated last year, but the process of disbursement of the installments has not yet started.

The EU Growth Plan funds are not disbursed immediately. They are closely linked to the completion of specific reforms in the justice, administration and economy. Until Albania officially proves the completion of these reforms, the financial means remain undisbursed.

Some of these loans are intended for large infrastructure projects, such as railways or energy. These projects require time for tenders, feasibility studies and environmental approvals before the withdrawal of money can begin according to the status of the works. This value of over half a billion euros currently constitutes about 30% of all undrawn debt in Albania, becoming the main factor that has inflated the total stock towards the 2 billion euro mark in 2026./Monitor