Eurobond renewal, government choses Deutsce Bank and JP Morgan

The Deputy Minister of Finances, Erion Luci, declared that by chosing Deutsche Bank and J.P Morgan for renewing the Eurobond, Albania increases the guarantees for success. 

“These are both banks with a very wide and global coverage, because they are like in the US and EU markets. The process might attract other banks which might help with the success of this instrument”, declared the Minister of Finances, Luci.

The government believes the renewal will save money for the budget. Deputy Minister Luci says that the loan received 5 years ago with a 7.5% interest will be replaced by a debt with lower interests.

“The main goal is to renew the existing loan. However, with a further management, there is always the possibility to replace the other debts, if the debt that you may take has currently better conditions than the existing one. We will see the other possibilities too, if the market conditions will still be good, so that we can replace the sum with some part of the existing debt, without changing the debt level parameters for which we have agreed with the international institutions too”, declared Erion Luci.

If the situation in the financial markets will remain the same, the government might take more than 300 million EUR to replace the internal debt too, besides the Eurobond.

The market conditions are much better than when we had the first Eurobond, which was right after the global crisis. The new polciies of the European Central bank also help having better interests for refunding the debt”, Deputy Minister Luci declared.

A few weeks ago, the government received a 250 million loan in foreign markets, but 200 of them were guaranteed by the World Bank. However, this figure, together with the new one after the Eurobond, will be within the limits planned by the budget.