The government has approved in principal an agreement with JP Morgan and Deutsche Bank for the issue of Albania’s first ever government Eurobonds. The prime minister emphasized that Albania and the Albanians will find the Eurobond market beneficial because they have a sound basis of an economy with high development indicators
Prime Minister Sali Berisha announced Wednesday during a meeting of the Council of Ministers that the government has approved in principal an agreement with JP Morgan and Deutsche Bank for the issue of Albania’s first ever government Eurobonds.
Speaking on the decision, PM Berisha evaluated it as a real achievement. “This is evidence of a rather important quality economic and financial development of the country.”
The prime minister emphasized that although the Eurobonds are denominated not in a favorable global situation, Albania still gives the most positive signals. “During these three months Albanian economy has experienced an unprecedented performance. I would like to reiterate that the Albanian exports, “Made in Albania”, over the first three month period of the current year had the greatest increase in the history of this country, but have also had an unforeseen growth as compared to the first three month period of year 2009.”
The prime minister highlighted that Albanian exports occupy the first or the second place in the world about growth as a whole or in percentage. “In ton, the country exports have doubled from 225 thousand tons, into 390 thousand tons, but growth in value is greater, from 6 billion into 14, 9 billion lek뮠Exports of processed goods from 19 thousand tons have achieved in the first three month period of 2009 into 45 thousand tons, from 16 billion lek롩nto 20.33 billion lek묠thus Albania exports have perhaps the highest increase or perhaps the second highest in the planet, in percentage terms.”
According to Berisha, not only the exports, but even the revenues have recorded an increase beyond any forecast. In this context, the prime minister invited all those who do not trust, those who speak of economic crisis to refer data provided by the international agencies which make evident Albania economic development. “Tax and customs organs have realized in March, beyond every optimistic forecast, a 20 to 22% increase as compared to March last year; thus, those who claim of crisis, I invite to read the data of Albanian exports which are carried not just in the country agencies, but are provided even by several international agencies. Those who claim of crisis should read data on the incomes and get the information via bank transactions; taxes in general are online, the same as the customs and there is no difficulty at all to conclude that those who claim that this government by May will be unable to pay the salaries, are nothing but charlatans.”
The prime minister emphasized that Albania and the Albanians will find the Eurobonds market beneficial because they have an economy of sound basis with high development indicators. “Albanian economy indicates an enthusiastic condition which was neither threatened by the financial tsunami or the “ballot box” question. This is the reality. Thus, under these circumstances we are optimistic that Albania and the Albanians will find entrance in the Eurobond market beneficial. Two of the main international institutions, Deutsche Bank and AJ Morgan, have taken over treatment of Albania Eurobonds. Thus, they come onto the market being supported by unprecedented indicators.”
Albanian government is thought it will emit between 300-350 million in euro denominated bonds this year.
This is Albania’s second attempt to emit eurobonds after an effort in early 2009 was abandoned due to the global financial crisis, forcing the Ministry of Finance to opt for a costly syndicated loan.
