Albania T-Bills Rate in Multi-Year High

C'Bank Governor A. Fullani

Tirana, – Albania treasury bills interest rates reached a multi year high on Tuesday as a result of higher demand for cash from the government and scarce offer from banks, data issued by Bank of Albania shows.

For 12-months treasury bills rate reached 8.75 per cent with in a bid were 21 out of 22 bidding offers were accepted, 50 base points higher then June 2008. 3-months treasury bills rate reached 6.35 per cent rate, 10 base points higher than June ’08.

Treasury bills interest rates usually have an increasing trend in December, due to end year demand increase for government expenditures, an independent study  has shown.
The cost of borrowing in the Albanian intra-bank market reached a multi-year high also in December as a result of worsening liquidity conditions of tier two banks.

In the last auction held on Dec. 2 for treasury bills, demand was tight, as a result yields increased by 24 base points compared to the previous auction. Maximum yield reached a multi year high of 8.59 per cent for a 12 months treasury bills.

Tirana interbank bid rate (TRIBID) for one day term reached 5.08 per cent this week, while Tirana interbank offer rate, (TRIBOR) for one day term reached 6.82 per cent.

Short URL: http://www.albanianeconomy.com/news/?p=1404

Posted by editor on Dec 24 2008. Filed under Banking & Finance, Business, Economy. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry