Albania's Public Debt Drops to 10-Year Low as Lek Strengthens

The Albanian government's efforts to manage public debt have led to a significant reduction in foreign currency debt, according to recent data from the Ministry of Finance.

The exchange rate risk, expressed as the ratio of foreign currency debt to total public debt, decreased to 40.1% in mid-2026, down from 40.9% a year earlier.

This decline is largely due to the strengthening of the Lek against the Euro, which has reduced the value of external debt in Albanian currency.

The Ministry of Finance reports that net external debt in mid-2026 was around 5.6 billion euros, similar to the end of last year.