Citizens to buy government bonds

TIRANA, Nov. 2- The government is trying to expand the possibilities for borrowing by using its T-bills and government bonds. An agreement with BoA and Finance Ministry has been reached in order to give the right to citizens to purchase such bonds. Up until now only commercial banks could trade in this particular financial market. These options will have maturity terms no shorter than one year. The government needs to increase internal debt in order to finance medium-term and long-term projects of infrastructure and other large public investments. These bonds can be issue din foreign exchange such as $ or euro or even in national currency lek. Given that they are issued by the government is that the risk associated with such investments is almost zero.
Deficit
Government bonds up to 2 or 3 years have been financing instruments of financing state budget deficit of the year 2005. Issuing obligations of maturity term 2 years has been increasing steadily from 4,000 million in 2003, to 9,510 million lek in 2004 and 22,700 million lek in 2005 all in nominal values. In order to diversify and better risk manage the refinancing risk the Finance Ministry in 2005 starting issuing 3-year bonds at the cumulative value of 6miliard롬ek뮠Budget deficit for the next year is expected to reach 7.95 percent of the GDP from 4.77 percent that it was during 2007. This seems to have been the reason for the government to expand the borrowing market even beyond borders by issuing Eurobonds.