Bank of Albania has put on sale 40 ml EUR 2 year fixed bonds, after recently selling 3.5 bl ALL two year fixed bonds with a fixed interest rate on behalf of Ministry of Finances. Based on the results of the auction, the demand of financial institutions for the buying of long term governmental bonds has been relatively high by reaching 4.7 bl ALL.
The coupon at the auction was the same with the indicative at the level of 4.84%. Economic experts say the auction in euro is very important , due to the high amount of foreign currency, as finances will tend to sell 40 ml EUR two-year fixed bonds with a 3.33% indicative coupon.
This is the second auction of two-year euro bonds. In the first auction, in December 2013, Ministry of Finances sought to sell the same amount, but only managed to collect about 25 ml EUR, with a coupon of 4.65%, higher than the indicative one of 4.4%, and all this came as a result of a weaker demand than the offer.
News source: Shqiptarja.com
Photo credits: Special Collection Toronto Public Library