Last update: Monday, August 6, 2018

Cost of debt per capita in the years 2010-2016

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Open Data Albania has considered the cost of debt per capita in the years 2010-2016. This indicator is calculated as the ratio of the amount of interests paid from the State Budget for the received and still outstanding credit with the country's population in a given year.

Source: Ministry of Finance, INSTAT
Processing and comments: ODA

The years 2010-2012 display low changes concerning the cost of debt per capita, ranging from  ALL 14 254 in 2010 to ALL 14,299 in 2012. The important curve in terms of indicator performance occurred in 2013, where the cost of debt per capita amounted to ALL 14 952, or 4.5% more than a year ago. The high growth was caused mainly by the increase of borrowing received with commercial interests against loans obtained previously with concessional interests or softer terms.

The situation is changed in 2014, where the per capita cost of debt went down to 13 843 ALL or 7.52% less than in 2013, a trend which continues even in 2015. This was due to the fall of interest rates in the domestic market, which enabled a cheaper debt for the state.

This effect is displayed more completely especially in 2015, when expenses for interests in the initial budget were ALL 49.2 billion, while in the Normative Act of July they were revalued at ALL 40.9 billion or 8.3 billion less. However, it should be noted that the reduction of expenses for interests during 2015, in addition to declining interest rates was affected by the exchange rate of ALL / euro and the decrease of contingencies for domestic guarantees.

The trend is expected to change again in 2016, where the cost of debt per capita will rise by 11.52%, to reach an amount of 14 899 ALL. The high growth of the indicator is caused by the rising interest rate, which is projected to run at 43 billion ALL in 2016, 4.3 billion more than in 2015. Although the Ministry of Finance has projected a reduction of the debt stock from 72.6% of GDP in 2015 to 70.6% of GDP in 2016, the amount of interests is increased, as it is estimated that the debt received in foreign currency will become expensive.

The performance of the debt cost per capita, albeit lower, was affected by the ongoing contraction of the population. However, the interest rates remain the dominant factor that determines the behavior of the cost of debt per capita.

Source: Ministry of Finance, INSTAT
Processing and comments: ODA

All the information on interests, population, the cost of debt per capita and their performance during 2010-2016 is presented in the following table.

Expenses for interests, Population, Cost of debt per capita, and their performance in the years 2010-2016

Source: Ministry of Finance, INSTAT
Processing and comments: ODA

Excel datasets : XML, N3 datasets :
    Contributer: Dr. Blerta Zilja
    Translated by: Mimoza Backa
    Edited by: ODA