photo: govern
According to the Minister of Finance of Andorra (Pyrenees) and its Spokesman, Eric Jover, evolution of the Andorran government budget deficit is the following:
It is estimated there will be a deficit of budget -111.3 million euros for 2020 and – 76.8 million euros for 2021.
Credit operations private banks and public debt issues:
• Extraordinary debt issuance of 125 Million euros in 1 year
• Syndicated credit policy of 50 Million euros
• Credit with Credit Agricole 100 million euros to 1.5 years. It is necessary to overcapitalize the government to cover possible future needs. With these operations, they allow the Andorran state room for manoeuvre with greater flexibility and resilience.
FUNDING MECHANISMS:
Council of Europe Development Bank:
Andorra joins as a full member. The quota provided for in the bill is currently being processed by the parliament. The “instrumentalisation” of this mechanism will be worked on in the coming weeks.
European Investment Bank:
Andorra has formalized the request for collaboration. This institution develops large-scale investment projects, especially those associated with infrastructure projects.
International Monetary Fund:
Andorra is expected to become a member of the IMF before the end of the year. The membership process is moving forward with the initial timeline set. At the end of June, the IMF will make an official quota proposal to the Government of Andorra and how it will be articulated.
The Minister of Finance and Spokesman, Eric Jover, has also announced the approval by the Government of a loan of €100,000,000 with the Crédit Agricole bank (France), intended to refinance the state to deal with expenses incurred due to the health emergency. The Minister added that progress is being made in other ways of financing with various international institutions such as the Council of Europe Development Bank, the European Investment Bank and the International Monetary Fund, a body of which Andorra could become a member right before the end of the year.
Eric Jover explained the strategy followed by the Government in relation to state funding after the impact generated on the country’s economy due to the COVID-19 health crisis. In this regard, the Minister said that the positive growth trend of recent years will be interrupted in the short term and an estimated fall in GDP of 9.8% by 2020. A forecast, said Jover, like that of neighbouring countries and which is entirely linked to the situation generated by the pandemic. Jover referred to the management that is being followed by the Executive to refinance the deficit forecast that is estimated at €188,000,000 between 2020 and 2021.
See also Andorra business guide
