Government in Albanian benefits from the drop of interest rates in the market

Government in Albanian benefits from the drop of interest rates in the market

Tirana, 25 July 2016/Independent Balkan News Agency

Although public debt in Albania has grown significantly in the past five years, the interest rates that the government pays on it has seen a significant drop.

Official data from the Ministry of Finance indicate that for the period 2010-2015, national debt grew by 14% of GDP. But for the same period, the interest rate that is paid went down from 3,36% of GDP to 2,67 of GDP.

The drop in the cost of debt comes as a result of the significant drop of interest rates in the market.

According to the Ministry of Finance, in June of this year, average interest rate of public went down to an all time low of 4,66% at a time when in 2010, Albania used to pay an interest rate of 8m7%.

The drop of interests in the market is a global tendency. It reflects the difficult economic environment, but also the aggressive policy followed by the Bank of Albania. /balkaneu.com/