Albania emits first time Eurobond in internal market securing 25 million euro

TIRANA, June 30؁lbanian Government has emitted for the first time the Eurobond in the domestic market securing 25 million euro with an interest rate of 6.05%, the local newspaper Panorama reported.
According to the sources from Ministry of Finance, the banks’ offers on bonds in euro reached to 32.9 million euro. The highest interest rate was 8% while the minimal interest rate offered was 5.58%. From all offers 23.37 million euro were purchased from commercial banks, while 1.63 million euro from individuals and other subjects.
This is the second time that the government has issued treasury bills in euro in the domestic market.
The Albanian Ministry of Finance has firstly planned to emit the Eurobond in international markets, but due to the world crisis and budgetary difficulties in some EU countries, which influenced the cost of borrowing in the international market, the Government decided to look at the internal market option.
The sale comes while the government is facing lower tax revenues this year and the deficit looks poised to deteriorate. The Ministry of Finance needs to borrow at least 40 billion lek (300 million Euro) to cover the projected deficit this year and according to some experts it could face a liquidity crisis.