TIRANA, Feb 24 /ATA/ – The value of foreign currency-denominated government securities, issued in the form of treasury bills and bonds, amounted to around 83 billion lek in Albania’s banking sector during 2023, the Bank of Albania said on Friday.

According to central bank, the value of these assets edged up 4% year-on-year in 2023.

Albanian government issued a 600 million euro worth five-year Eurobond, with a 5.9% coupon, in the end of June 2023. Bank investments in Eurobonds are carried out through auctions.

According to central bank, the foreign currency-denominated government securities are attracting increasing interest from the banking sector due to satisfactory return rates thanks to the low interest rates on Europe’s single currency.

Similarly, the increase in foreign currency-denominated deposits in the last few years has created significant cheap liquidities, allowing banks to enhance their lending to the country’s economy.