From November 8 to 17, 2010, a WorldBank team undertook a Debt Management Performance Assessment(DeMPA) mission to Tirana, Albania. The mission'sobjective was to prepare a comprehensive assessment ofgovernment debt management functions by applying the DeMPAmethodology. This report presents the results of theassessment, based on the December 2009 version of the DeMPAtool. The assessment reveals that Albania meets therequirements for the A score in eleven dimensions assessedthe B score in five dimensions, the C score in twelvedimensions, and the D score in five dimensions. Of more than50 countries assessed by the World Bank under the DeMPAprogram so far, Albania stands out as one of the few whichhas sound debt management practices in the largest number ofareas as defined by the DeMPA methodology. Albanian economyis highly dependent on remittances. Sectors that rely onremittances construction, wholesale and retail, and otherservices together account for over 60 percent of thecountry's Gross Domestic Product (GDP) and has been thebackbone of the country's strong growth. Large capitalinflows (remittances, official assistance, and some foreigndirect investment) have resulted in a steady appreciation ofthe country's currency. The DeMPA focuses on centralgovernment debt management activities and closely-relatedfunctions, such as the issuance of loan guarantees,on-lending, cash flow forecasting, and cash balancemanagement. Thus, the DeMPA does not assess the ability tomanage the wider public debt portfolio, including implicitcontingent liabilities.
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