Individuals fund 15% of Albania’s domestic debt

The interest of individuals to invest in Albanian government debt securities remains high.

According to data from the Ministry of Finance, at the end of June individuals held 15% of the total domestic debt, the highest levels ever recorded.

Due to the sharp decline in interest rates of deposits, last year individuals have tried to invest more in bond and bond auctions to profit from somewhat higher interest rates.

In particular, bonds have maintained satisfactory interest rates.

On the other hand, commercial banks remain the main funders of the Albanian government’s domestic debt.

By the end of the six-month period, banks owned nearly 61% of the debt stock, from 60.3% at the end of 2016.

The Bank of Albania continues to lower its share in the government securities market, reaching a historical minimum of about 8.4%, from 9.3% at the end of last year.

A significant weight in the market is held by the financial institutions too, mainly investment funds, with about 14%.

These funds mainly invest in treasury bills and bonds of individuals, so, indirectly, it is a market share that in the majority belongs to individuals and which brings their share, in total, to about 30%.

At the end of June, the Albanian government’s domestic debt amounted to ALL 575 billion, up 2.5% since the beginning of the year.

SCAN 

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