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The crisis in the fashion sector/ Flaws: 4 billion ALL to cope with the shocks

2024-02-21 13:51:00, Ekonomi CNA
The crisis in the fashion sector/ Flaws: 4 billion ALL to cope with the shocks
Ervin Mete

The Minister of Finance and Economy, Ervin Mete, after the meeting of the government, said that the government will provide 4 billion lek in support of businesses in the manufacturing industry sector, which need to improve technological processes and further increase productivity. 

According to Mete, this decision comes to face the effects of strikes in this sector. 

"As for the part of the expenses, in addition to the budgeting of the restructuring of the ministries, through this normative act we are also supporting a State Guarantee Instrument of 4 billion lek in support of businesses in the fashion processing industry sector, which need to improve technological processes and to further increase productivity, this also to cope with the effects of shocks in this sector. This instrument aims to support businesses through the state loan guarantee, in order to ensure the necessary financing from second-level banks," he said. 

Full word: 

Based on the recent changes of the ministries, the need to reflect in the budget their reorganization according to the new areas of responsibility, as well as after the final assessments of 2023 have been made, the Government has today undertaken a normative act for changes in this year's budget.

As it was said earlier, it is estimated that the economy performed well last year and at the end of the 2023 budget year, it turns out that the main macro-economic indicators had significant improvements, following a positive trend, which we expect to be so during the year as well. 2024.

More specifically, public debt fell to 59.2% at the end of 2023, lower than the pre-pandemic period and also the lowest since 2010.

The primary balance at the end of 2023 returned to a positive position and the budget deficit marked the level of 1.4% of GDP.
The level of income reached 643 billion ALL, or over 6 billion euros, with an increase of 12.3% compared to 2022 and this good performance is continuing in the first months of 2024, according to the data so far.

Over the past year, contributions collected in the social insurance scheme reached 5.7% of GDP, significantly reducing the scheme's deficit to nearly 0.8% of GDP, the lowest level ever recorded.

Based on these developments, the revenues for 2024 are revised upwards, which are already projected at about 687 billion ALL, or 28.2% of GDP.

As for the expenditure part, in addition to the budgeting of the restructuring of the ministries, through this normative act we are also supporting a State Guarantee Instrument of 4 billion lek in support of businesses in the fashion processing industry sector, which need to improve technological processes and to further increase productivity, this also to cope with the effects of shocks in this sector. This instrument aims to support businesses through the state loan guarantee, in order to secure the necessary financing from second level banks.

Also, the changes in this act foresee the reclassification of the financing category of the new commercial port, the financing of the special structure for the protection of the environment and the development of tourism, as well as the financial support for the reconstruction of some buildings and the improvement of the infrastructural conditions of professional education, in the framework of the Government's attention to this sector.

At the macro level, fiscal consolidation continues, projecting a downward trend of public debt, as well as a deficit 4 billion ALL lower than the initial budget projection. /CNA 

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