The state does not pay the state/ The debt that public entities have to each other amounts to 1.7 billion euros

2024-08-26 08:11:00, Ekonomi CNA

The state does not pay the state/ The debt that public entities have to each

Illustrative photo

The mutual debt of state-owned enterprises reaches 1.7 billion euros in May 2024, increasing further compared to May 2023 by about 47 million euros more.

According to data from the Ministry of Finance, the total amount of mutual arrears until the end of May 2024 results in a progressive total amount of ALL 172.57 billion (USD 1.7 billion).

This amount is 2.8% or 4.7 billion ALL higher than at the end of May 2023. These obligations are as much as 25% of the budget revenues planned for this year.

The total of mutual obligations that KESH sh.a has until the end of May 2024 towards third parties results in 36.71 billion LEK, 6.4% higher compared to the first 5 months of 2023.

The total of mutual obligations that OST sh.a has until the end of May 2024 towards third parties is LEK 19.66 billion, or 0.5% lower than the 5-month 2023.

The total of mutual obligations that OSHEE Group sh.a has until the end of May 2024 to third parties is LEK 69.18 billion, or 14% higher than the 5th month of 2023.

The total of mutual obligations that UK companies have until the end of May 2024 towards third parties is 40.92 billion LEK, or 7.66% higher than 5 months 2023.

The total mutual obligations that the Line Ministries/Budgetary Institutions have until the end of May 2024 towards third parties is 6.1 billion LEK or 9% more than 5 months 2023.

In the framework of the reform in the energy sector, the Ministry of Finance and the Ministry of Infrastructure and Energy co-signed the Joint Order "On the implementation of the plan of measures for the reduction of arrears in the electricity sector", through which the enterprises of the sector energy report periodically on a monthly basis, on the repayment of mutual arrears between the energy sector and other public entities.

During the year 2024, in accordance with the above-mentioned instruction, the Ministry of Finance has periodically monitored on a monthly basis the mutual obligations reported by the enterprises of the energy sector and other public entities. The monitoring process is showing that the wave of liabilities continues to rise rather than decrease.

The mutual debt of state-owned enterprises was extinguished in 2014 after a loan of more than 700 million euros was taken to pay off the obligations created up to 2013, the stock of which was about 7.1 billion lek.

The Albanian government strengthened rules, laws and guidance to avoid creating arrears, but they have returned to even higher values.

The Ministry of Finance reports that despite the positive financial result for the period Q1 2024, public companies continue to face a situation of insufficient liquidity, carried over from previous years, which has made it impossible to repay all obligations according to the annual plan.

Another factor that has influenced the current situation are the delays in the settlement of mutual obligations by UK companies./Monitor