TIRANA, Albania (AP) -- The International Monetary Fund says it has given initial approval for a 300 million euro ($412 million) loan to Albania to support the small Balkan country's economic recovery.
Albania's 3-month-old Socialist government is struggling with stagnant private credit and a rising national debt set to reach 74.8 percent of GDP.
IMF officials said Tuesday the loan is subject to formal approval early next year and conditional on a series of fiscal reforms.
The loan will mostly go toward paying government arrears to the private sector, worth an estimated 35 billion leks ($337 million; 245 million euros).
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