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The Albanian government requests a loan from the World Bank. What is the amount and what is it for?

2024-04-29 13:12:25Biznes SHKRUAR NGA REDAKSIA VOX

The Albanian government requests a loan from the World Bank. What is the amount

The Albanian government wants to receive a loan of 80 million USD from the World Bank to support reforms in the direction of expanding the tax base, energy and environmental protection.

The loan is expected to be finalized in December of this year, while it includes 3 pillars. The first pillar will support reforms aimed at the sustainability of the government sector and households. More specifically, the aim is to support the adoption and implementation of by-laws of the law "On Income Tax".

Also, support will be provided for amending the "Tourism" law, which expands the government's definition and oversight of tourism activities, including short-term rentals or in other words rental income from AIRBNB and Booking.

Part of the first pillar is the support for the adoption of the law "On mandatory earthquake insurance for residential properties". Finally, to increase the effectiveness of the social assistance system, this pillar aims to address the legal vacuum related to the lack of provisions that would enable the creation of the Social Fund at the local level.

Meanwhile, the second pillar supports reforms aimed at strengthening the energy market framework, increasing renewable energy and energy efficiency. Through this pillar, the creation of the Renewable Energy Operator, the market rules and its operation, as well as the regulatory package for consumers will be supported.

According to the World Bank, this is expected to boost the development of the renewable energy market. In addition, to further support the trading of energy through the organized wholesale market, the adoption of a decree mandating the trading of energy through the Albanian Electricity Exchange, ALPEX, will be supported.

Finally, to introduce energy efficiency in the public sector, the adoption of procurement provisions that instruct public contracting authorities to ensure the implementation of energy efficiency standards in public procurement procedures will be supported.

Meanwhile, the third pillar supports reforms aimed at protecting the environment and reducing the country's carbon footprint. Thus, in order to prevent and reduce environmental degradation, the adoption of the law "On extended producer responsibility", the introduction of a carbon tax on coal, as well as the adoption of the regulatory package for the implementation of the law "On fluorinated greenhouse gases" will be supported. ".


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