Remarks on Publication of New Local Borrowing Manual

Remarks by USAID/Albania Mission Director Roberta Mahoney
Launch of Local Borrowing Manual
April 15, 2009

Good afternoon Honorable Mayors, Deputy Minister Shehu, Mr. Hodaj, Mr. Smith,  ladies and gentleman,

It is a pleasure to open this workshop today, to introduce the Guidelimes on the Local Borrowing in Albania.

The U.S. Mission in Albania, through USAID, has supported Albanian decentralization for over 15 years. We do this for a very important reason -- to bring government closer to its citizens.

The approval of the local borrowing law in 2008 opened up great opportunities for the Albanian Municipalities.

It means that now local governments have the authority to increase resources through commercial credit to finance development projects of benefit to their communities.

The manual is an important tool which will facilitate the work of finance specialists in the municipalities. It will help them make informed decisions on how to use debt to finance infrastructure improvements, how to analyze the financial status of the municipality in order to demonstrate creditworthiness how to calculate borrowing limits. 

By using the borrowing authority given to them, cities will be able to diversify and expand their financial resources to upgrade infrastructure and provide quality services in their communities. 

USAID would like to thank both the Ministry of Finance and the Albanian Association of Municipalities for their cooperation and support for this manual.

They have provided valuable inputs that have helped develop these Manual, which we believe, will be very useful in the municipal local finance administrators’ daily work.

As mentioned, the Manual that is being introduced today will help local governments finance more development projects for their community’s thus improving services and the quality of life for the citizens.  

I believe we are all aware that while local governments are taking more responsibilities, financial resources to cover the increasing demands of the citizens for better services and capital investments continue to be limited.

Local borrowing is a great tool which will help municipalities to maximize their own source revenues, and prepare long term projects which can be financed by the financial sector.

Municipalities need to work hard to identify and calculate viable and bankable projects to ensure financing and meet citizens’ demands even when these demands seem to grow faster than financial resources.

This Manual will help finance administrators throughout Albania to better understand the legal framework on local borrowing , and also do a better job in developing bankable projects and promoting a decision making process in their respective municipalities which is transparent and participatory.

While there is much yet to do, this is a very important step forward. This publication is a practical guide to improved performance in all municipalities.

Local governments that use these tools will be able to provide better public services to their citizens, and enhance their ability to operate effectively and independently from the central government as modern local self-governing units.

USAID is proud of the excellent cooperation with the Central and Municipal Governments on the decentralization reform and will continue to encourage your efforts as you strive to improve the lives of the people in your municipalities.

I wish you success in your work today and I want to assure you that USAID will continue to support you in your efforts.