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Albania borrows €250 mln from foreign banks

Albania’s finance ministry said on Monday that it has borrowed €250 million ($320 million) from two foreign banks to cover its budget deficit.

The ministry said in a statement that Finance Minister Ridvan Bode has signed an agreement with the Deutsche Bank and Greece’s Alpha Bank for the loan.

The ministry hasn’t elaborated on how much it will cost to borrow the money to fund mainly the country’s infrastructure investment.

Albania has borrowed €230 million from Greece’s Alpha Bank and National Bank of Greece to finance its 2008 budget deficit.

The International Monetary Fund, which ended its final supervisory agreement with Albania on Jan. 31, has downgraded its GDP grow forecast for Albania from below 3.7% to 0.4% in 2009. (Xinhua)