Treasury bond interest rates increased
17/02/2012 00:00
Linda Rama: Between Family, Work and Albania’s Future 18/08 14:30
After some months in a downfall, the Treasury Bonds experienced a sudden
increase last week. The government increased the demand for loaning
money in the recent auction, making the one-year-termed Treasury Bonds
increase from 7% to 7.21%.
Bonds of other maturity terms also increased. According to Bank of Albania, the high government demand in the last auction doesn’t indicate a tendency, but is an event related with the circumstances.
Top Channel learned that the government needs this money to pay one of the installments for the purchase of the French helicopters, ordered in December 2009. The Albanian government signed an agreement with the French Eurocopter, and has to pay 78.6 million EUR in three years, with a installment program.
The Albanian government is obliged to pay the biggest installment of 20 million EUR within this year, not later than February 28th. This is one of the most difficult moments for the budget. Besides the income reduction, the already emptied treasury case is facing additional expenses for buying electricity and for facing the emergencies in the areas isolated by the snow.
Due to this situation, the Ministry of Finances was obliged to change the debt plan by loaning in February more than it was predicted, and with a cost, as it was seen in the recent Treasury Bond auction.
A US company also participated in the tender for the helicopters, but the Albanian government chose the French one. It was the time when Albania was desperately waiting for the EU visa liberalization.
Top Channel
