Treasury bond interest rate dropped to the lowest point of all time,
reaching for the first time 2.5% for the annual term. New data from the
Bank of Albania show the average interest rate of the annual bonds was
2.54% from 2.83% that it was by the end of the past month.
But this saving method is almost at zero, since 2.54% is close to the annual inflation rate. This means that the real profit is around zero.
The dropping interest rate is a tendency that has been going on for two years, due to the weak economic activity and the aggressive policy followed by the Bank of Albania, which has reduced the interest rate for 14 times to a historic minimum of 1.75%”.
Besides these factors there is another element too, the government’s withdrawal form internal debt. The government has preferred the foreign market to exert positive pressure on banks so they increase credit for businesses and individuals.
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