“Deutsche Bank wins race for Albania’s debt

07/04/2015 00:00

“Deutsche Bank” will fund the Albanian government with 250 million EUR with the World Bank as guarantee.

The German Bank has given the best offer to the Ministry of Finances, with an interest rate of 1.3 % over the benchmark rate and with a 10 year maturity period.

This is the first time that Albania enters the international financial markets with the World Bank as guarantee. This scheme, according to the Ministry of Finances, reduces the cost and the time for taking the debt.

Albania is not the first country in the region that enters the international markets through this method. In the past few years, Macedonia and Montenegro have done the same.

Last year, the Montenegrin government received 100 million EUR from the World Bank with a 4% interest.

The 250 million EUR that the government will take from the private operators will be used for funding the budget deficit. Besides the 250 million EUR that have been guaranteed by the World Bank, the government will have to renew 300 million EUR in Eurobonds, taken in 2010.

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