Albania looking for loans in international markets, ready for 500 million EUR Eurobond
14/12/2017 18:20
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Albania may demand another debt in the international markets, through a new Eurobond.
Top Channel has learned that the government may issue a 500 million EUR Eurobond for its financial needs.
The 500 million EUR will not be entirely debt. Most of it will be used to replace existing loans that have higher interests, or to renew the debt that is entering maturity date.
The net value of the debt that the government will take next year will be 240 million EUR or 2% of the national GDP.
Even though the government will take 240 million EUR next year, the public debt will be reduced from 71.1% to 68.6% the next year, due to the increased economy and inflation.
The government’s strategy to take loans from the international markets will push the deadline or the debt’s maturity, and it will reduce the pressure of the internal market, leaving more money to banks for crediting businesses.
However, orienting loans towards international markets has its own risk. According to the Ministry of Finances, the foreign debt could devaluate the domestic currency.
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