Albania has borrowed 600 million euros in the international market. The interest rate according to data from the London Stock Exchange is 5.9% year-on-year, while in the long term it reaches 6.1%.
The executive received 100 million euros more debt than the initial plan, while the interest is 60% higher than the interest from the last eurobond issued by the government.
The Eurobond has a 5-year term and the last repayment date is June 9, 2028. The government has said that of this debt, a part will go to pay off the remaining debt, while the rest will go to cover the budget deficit.
In total, this is the country’s 6th entry to the international markets through this borrowing mechanism.
According to experts, the government’s exit for commercial debt at these moments brings new risks and opportunities.
“Actually, I would have two objections in this case. The moment that comes out in the foreign markets should have been more studied to see the domestic markets, so we would have less exposure to risks. All logic is taking on so many debts, of course the country enters a non-positive approach to the future”, said the interviewed economist.
Only the first two Eurobonds, the one from 2010 and the one from 2015, have been repaid so far, while the previous three, together with the new debt, are still unpaid.
The Eurobond of 2021, with a 10-year term, is the longest and expires in 2031. Without the last Eurobond, a total of 2.55 billion ALL are borrowed, while 70% of them continue to be active.
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