Government reviews the debt scheme; not every step passes through parliament – Immunity and exemption from taxes directly from the Minister of Finance

The Albanian government has prepared a law that makes optional the obligation to obtain the approval of the parliament for any procedure for borrowing in foreign markets. The initiative comes at a time when forecasts for international markets speak of the possibility of debt increases in international markets as a result of the policies that are being undertaken in response to the price crisis and the military conflict in Ukraine.

The initiative filed in the Assembly is argued as an intervention in the direction of improving the process of state borrowing and state debt management, to prevent any possible situation.

Specifically, the initiative reviews the approval procedure on a case-by-case basis for parliamentary approval of tax exemptions or waivers of immunity whenever the country needs to access international markets for financing.

“In the agreements which will be concluded by the minister responsible for finance for the realization of borrowing in the international markets, provisions for waiving immunity are allowed. Non-resident holders of debt instruments acquired in international markets, whether natural persons not resident in Albania or non-resident entities without a permanent establishment in Albania, including co-managers, are exempt from income tax in Albania for all transactions and activities related to the issuance, holding, storage, and trading of debt instruments, as well as from any indirect tax or other tax applicable in the Republic of Albania.” is written in the provision added to the public debt law.

Such an intervention would enable the further simplification of the borrowing procedure in international markets, in conditions where this process requires a rapid response to take advantage of the opportunities that the financial markets can offer at certain times, considering that these markets are presented with very dynamic developments that are impacted by any given indicator or circumstance.

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