High demand for EUR bond, coupon at 0.8%

The Albanian government held on Thursday an auction for the sale of 2-year bonds in euro, which attracted once again a big interest from the market.

The total amount requested by the government in the auction amounted to 64.6 million euros, while the amount received by the Albanian government was at the level of 39.6 million euros.

In order to hold the coupon at lower levels, the Finance Ministry has preferred to take a somewhat lower loan from the announced 45 million euros.

However, the coupon or the average interest rate on bonds was again favorable, at 0.8%, similarly to the previous EUR bond auctions which had taken place in January.

Even this auction showed that the cost of government borrowing in euro is significantly lower than in lek.

At the last auction, two-year LEK bonds were issued with a coupon of 2.64%, a level three times higher than EURO bonds.

The financial market continues to have cheap liquidity in euro, at a time when deposits are growing and lending in the European currency is weak.

In general, the euro offer in the financial market remains high, which has also led to a devaluation of the European currency at the exchange rate with ALL at the lowest levels of the last eight years.

The Albanian government is using this favorable moment to secure low-cost financing by issuing some of its debt instruments in euros.

SCAN

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