EUR 450 ml Eurobond is a success, says Minister of Finances

Tirana, November 10, 2015

The Minister of Finances Shkelqim Cani declared on Tuesday that the sale of Eurobond is a success for the Albanian government and that the process has its difficulties. “Albania was evaluated positively by the potential investors for the undertaken structural reforms,” declared the Minister in a press conference.

According to Cani, the EUR 450 ml Eurobond with an interest of 5.75% will be used to replace the EUR 300 ml Eurobond of 2010 with an interest of 7.5% while the remained amount of EUR 150 ml will be injected in the domestic market. Through this policy, the government aims to boost lending to businesses.

Cani explained the government’s decision to sell the EUR 450 ml Eurobond in the international markets with the argument that if the government would receive the EUR 150 ml debt in the domestic market, this would decrease the lending to businesses and would force banks to keep high norms of interest. “This is the reason why we decided to receive debts in the international market,” declared the Minister Shkelqim Cani, by adding that this debt will not increase the public debt.

News source/photo credits: ATA