Secondary Market Development – Pilot Project with 5-Year Bonds

The Ministry of Finance has begun the implementation of pilot project for the development of the secondary market of bonds. The project has brought a new form of trading of 5-year bonds. Only five banks, selected as ‘market makers’ or market developers, participate in competitive auctions.

Subsequently, these bonds are traded by developing banks through an electronic platform. Interested investors can buy bonds through market developers. Each day, the Ministry of Finance and the Bank of Albania publish the fixed yield of trading these bonds. Currently, this yield is 4.55%, while the bond issue bond has been 5.3%.

This enables you to have a genuine market price for these instruments. This price directs investors for future auctions by the Ministry of Finance. The mechanism aims to develop the secondary market, making the bonds more liquid instruments and at the same time to set fairer prices for public debt securities. The existence of a reference rate of government bonds will also orient the debt instruments of a private future.

Corporate bonds are being issued for years, but with private bidding, while stock market opening has increased expectations for their public offering, but above all for their trading after the issue. Initially, 5-year bond auctions will be held every month, and the frequency will be less frequent. In the long run, the objective is to extend this form of trade to other government debt instruments.

SCAN

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