Interest rate for Albania’s treasury bills falls to 2.03%

Interest rates for treasury bills fell once again in Tuesday’s auction, thus registering the fifth consecutive decline.

According to data from the Bank of Albania, 12 month maturity bonds were issued at an average pondered interest rate of 2.03%, down from the level of 2.46% of the previous auction.

The market showed again a high appetite for investing in the Albanian government treasury bills.

From ALL 9.2 billion of treasury bills offered at the auction by the Ministry of Finance, the demand in total amounted to nearly ALL 14 billion.

Experts believe that this increased demand for treasury bills may have been influenced by the increase of liquidity that the Bank of Albania injected into the market through repurchase agreements.

The interest rates of the Albanian Government securities rose in the last quarter of last year, due to the fall of market demand for domestic bonds, but suddenly, at the beginning of this year, the situation was overturned.

The value of demands submitted to the auctions of treasury bills and bonds rose sharply.

In part, this may be related to a tepid period of private sector crediting, but the main explanation, according to experts, is related with the role that Bank of Albania has undertaken recently.

After the government suffered at the end of last year to provide the necessary funding in Albanian Lek, apparently, the Bank of Albania has intervened to temporarily increase liquidity in the market, which has brought as a result a reduction of interest rates.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.