Government, loans from individuals

The official statement released by the Bank of Albania says that the government has been able to receive the entire sum, with a 5.26% interest. This is the second auction within a single month when the government takes debts in Euros. The first was held by the end of July, when the Ministry of Finances secured only 11.5 million EUR, although they had demanded 15 million.

But this time individuals were more available to lend money to the government, since the interest is higher than investing in deposits and offers more security. The government was obliged to borrow in Euros because some of the biggest banks in the country started to decrease the loans to the government, due to the conditions set by the European Union.

According to Bank of Albania, one of the biggest private banks decreased the public debt burden with 3 percentage points, putting the government in difficulties with the financing of its debt. Being in front of this situation, the Ministry of Finances started an awareness campaign to encourage individuals to invest their savings in treasury bonds, not only in Euros but also in Albanian Lek.

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