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In focus: Macroeconomic indicators TREASURY BILLS ARE CITIZENS’ SAVINGS By Mitro Cela In the Meta Government’s program, presented on 3 November, page 13 states: The budget deficit will be reduced from 5.7 percent to 5.1 percent. How will this deficit be covered? The lion’s share, 28 billion lekë, comes from treasury bills, say experts at the Ministry of Finance. The Prime Minister says something different: the deficit will be covered by the banking system! (Same page) At first glance, we have a slip of the tongue. The Prime Minister, being honest, tells the truth: financing from the Bank. The Ministry of Finance plays with words: Treasury bills! Starting from the popular saying that a big hare comes out of a small bush, it is worth analyzing this “slip.” There is a law that sets the limit on financing the deficit through the Bank. The bill that follows this law is that the Bank must credit the Budget with around 4.5 billion lekë. The Prime Minister himself acknowledges that the banking system has financed six times more. The difference in the figures points toward a violation of the law. Whoever breaks the law also has to pay the price of responsibility. No, say the finance experts. There has been no violation of the law. The Bank has given the Budget as much as the law allows. The rest, the Budget buys with cash, through treasury bills. Here we encounter some “secrets” that transform loans into treasury bills. We will try to explain this in plain language, so that the newspaper’s readers can understand and follow us. After the collapse of the pyramid schemes, some citizens put their savings in banks. The banks’ mission is to take the people’s savings and… (Continued on page 5)

■ There is a law that sets the limit on financing the deficit through the Bank. The bill that follows the law is that the Bank must credit the Budget with around 4.5 billion lekë. The Prime Minister himself acknowledges that the banking system has financed six times more. The difference in the figures points toward a violation of the law. Whoever breaks the law also has to pay the price of responsibility. ■ Treasury bills are not an invention of Albanian experts. Once they appear on the stock exchange, treasury bills follow the economic scenario and end up in the nimble pockets of the state. Anyone with savings should go to the Tirana Stock Exchange one day. They will see that the Budget is the only customer for Treasury Bills! ■ The fact that Budget-1999 investments are expected to reach around 55 percent shows that the people’s savings taken by the State have been used to cover tax evasion and soften the effects of smuggling and corruption.

allowed. The Prime Minister himself acknowledges that the banking system has financed six times more. The difference in the figures points toward a violation of the law. Whoever breaks the law also has to pay the price of responsibility. No, say the finance experts. There has been no violation of the law. The Bank has given the Budget as much as the law allows. The rest, the Budget buys with cash, through treasury bills. Here we encounter some “secrets” that transform loans into treasury bills. We will try to explain this in plain language, so that the newspaper’s readers can understand and follow us. After the collapse of the pyramid schemes, some citizens put their savings in banks. The banks’ mission is to take the people’s savings and…

© Meksi Compromise

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