Post by account_disabled on Mar 4, 2024 16:28:16 GMT 10
The former Deputy Minister of Finance in the Rama Government, Irena Beqiraj, through a post on social networks, says that it is not success getting a new debt, but the interest rate with which it is dealt with. Referring to the 650 million euro Eurobond, Beqiraj emphasizes that in 2020 the interest rate is 33% higher than that of 2018. "The banker explains that when the markets have a lot of liquidity (especially after the announcement of the 750 billion euro package of the European Bank) and the interest or returns of other classes of securities are very volatile or are negative, foreigners will be ready to give Albania debt at this rate. The interest rate of 3.625% is nothing spectacular", writes Beqiraj.
Post by Irena Beqiraj Eurobond Cambodia Telegram Number Data and Comparison with Germany. Read also: Summit for Ukraine, Bushati: Our contribution, Lilliput! Ylli Manjani: Why did Vucic break Rama's meeting If you ask a banker, he would explain: "for the evaluation of the Eurobond we have to compare with Germany and all the countries whose government bonds are classified AAA. The interest rate on the AAA bond portfolio is considered the risk-free interest rate or base rate. You can find the interest rates of the AAA bond portfolio at the European Central Bank". Country Eurobond interest rate = Risk-free interest rate + Country risk price.
It is precisely the risk price that shows the perception that investors have about Albania's risk. Has this price increased or decreased for 2020? That's the point. 2020 The interest rate of the Albanian Eurobond is 3.625 The risk-free rate -0.239% comes from the risk price for Eurobond 2020 = 3.864% 2018 Interest rate of the Albanian Eurobond 3.55% Risk-free rate +0.54%, where does the risk price for the 2018 Eurobond come from = 3.01%. So in 2020 the risk price is 0.85%, or 33% higher than in 2018. But is this a spectacular result? I don't know how to say that.
Post by Irena Beqiraj Eurobond Cambodia Telegram Number Data and Comparison with Germany. Read also: Summit for Ukraine, Bushati: Our contribution, Lilliput! Ylli Manjani: Why did Vucic break Rama's meeting If you ask a banker, he would explain: "for the evaluation of the Eurobond we have to compare with Germany and all the countries whose government bonds are classified AAA. The interest rate on the AAA bond portfolio is considered the risk-free interest rate or base rate. You can find the interest rates of the AAA bond portfolio at the European Central Bank". Country Eurobond interest rate = Risk-free interest rate + Country risk price.
It is precisely the risk price that shows the perception that investors have about Albania's risk. Has this price increased or decreased for 2020? That's the point. 2020 The interest rate of the Albanian Eurobond is 3.625 The risk-free rate -0.239% comes from the risk price for Eurobond 2020 = 3.864% 2018 Interest rate of the Albanian Eurobond 3.55% Risk-free rate +0.54%, where does the risk price for the 2018 Eurobond come from = 3.01%. So in 2020 the risk price is 0.85%, or 33% higher than in 2018. But is this a spectacular result? I don't know how to say that.