The interest rate of Albanian Eurobonds sold in the secondary markets has declined during this year, according to the latest data. The Albanian government bonds are quoted at a percentage of 3.38, while in the beginning of this year this percentage estimated to be 5.4%.
Yield on the Albanian Eurobonds is at the lowest levels since its first issue of bonds in euro on October 28th, 2010. The decline of the interest rate is a positive signal, according to experts, since it implies a higher belief of investors on buying bonds.
This decline has come due to the overpass of the public debts crisis and the return to optimism as the Albanian economy has marked a slight growth in the last months. This has also come as the decline of interest rates of governmental titles.
The Albanian Eurobonds interest rates were at a record high in the end of 2011, at the time when the Eurozone was touched by the economic crisis. But, as the Eurozone emerged from the crisis and marked recovery in financial terms, these indicators have affected in the decline of Albanian Eurobonds, say economic experts.
Another important cause of the decline of the interest rate, is the continuity of collaboration with the International Monetary Fund and the new strategies on the decrease of public debts in a midterm. It is expected that during this year, Albania will come out in the secondary market to refinance the existing debt.
News source: Scan Tv
Photo credits: Pixabay / hslergr1