Eurobond sold, government ready for 300-500 million EUR of debt
05/11/2015 00:00
The Washington Agreement Must Be Reactivated! 06/01 19:04
Albania’s request for 300-500 million EUR of debt has been fulfilled.
The government will now decide about the right amount, with interests
not higher than 6%.
The Ministry of Finances paid 300 million EUR for the Eurobond of 2010. 250 million were secured from a World Bank loan, 50.000 from the internal market. This has created a need for liquidity, which serves to finance the government’s daily operations.
Although the conditions in the international markets of finances have not been easy, the government has officially received the approval of the two managers of this project, Deutsche Bank and GP Morgan.
The Eurobond that was maturated yesterday, was the first in Albania’s history. In that time, Albania secured it with a 7.5% interest rate. This time it is only 6.
The international market interests have dropped to the lowest historic points, much lower than five years ago, due to the aggressive policy of the Central European Bank and the Federal Reserve.
Countries like Mexico and Poland have secured debts with real negative interests, lower than the inflation. But the markets had other troubles after the Greek crisis and the Chinese economic slowdown, which raised concerns about the world economy.
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