This report covers the main macroeconomic releases from mid till end October and financial and political events that took place in Albania during this period. More than three months after the June 23 general elections won by the Socialist-led coalition, the government started talks with the IMF and the World Bank searching for financing to repay the state’s EUR 400mn arrears to the private business in a bid to unlock the economic growth and reduce the amount of non-performing loans. For the purpose Albania has contracted Deloitte to precisely audit the arrears and calculate them before they are recognized as public debt. Deloitte’s report should be ready by the end of November. According to latest data from the finance ministry, the general government debt, including state guarantees, stood at ALL 872.2bn (EUR 6.23bn) at end September 2013, unchanged from the previous quarter. The debt accounted for 61% of the projected full-year GDP. Albania’s general budget deficit expanded by 124.9% year on year in the first nine months of 2013 as revenue fell while expenditures increased. In our calculations, the deficit accounted for 4.1% of the projected full-year GDP, up from 1.9% a year earlier. Foreign trade deficit narrowed by 20.5% year on year to ALL 184.9bn (EUR 1.3bn) in January to September 2013. The gap accounted for 12.9% of the projected full-year GDP, down from 17.1% a year earlier. The lower deficit came as exports increased by 16% year on year, while imports declined by 5.8% year on year.