Treasury Bonds Market Lacks Competition, Says Konfindustria

Konfindustria will officially request the Albanian government to intervene in treasury bonds market in order to improve the way how the second-tier banking system operates and increase the fair competition in this market

TIRANA Konfindustria expresses its concerns regarding the way how the Albanian treasury bonds market is functioning and the lack of competition between the banking operators. In a press release, the General Administrator of Albanian Confederation of Industries, Gjergj Buxhuku illustrated this phenomenon with the significant increase of interest rates of the 12-month maturity treasury bonds emitted in the last auction held by the Bank of Albania. The interest rates in this auction reached at 7.1 percent.
Konfindustria will officially request the Albanian government to intervene in this market in order to improve the way how the second-tier banking system operates as this a necessary measure to prevent the unacceptable consequences in the treasury bonds market. Konfindustria advised the lawmakers to undertake as soon as possible these measures against the last developments in the treasury bonds market.
Buxhuku said that the government should establish an information system and extend the involvement of the citizens and subject in the treasury bonds market directly without the mediation of banking system. He also requested the lawmakers to consider seriously the establishment of second-tier bank with public capital in order to create the necessary conditions for the increase of the fair competition in the market.
Moreover, Konfindustria stated that the recent increase of interest rates to 7.1 percent after the lowering of Lek key interest rate to 4.5 percent, at the highest level of deposits in Albanian banks and the low increase of crediting of private sector is hard to be legalized only due to the necessity to reconstruct the banking credit portfolio which tend to decrease the value of the loans given to private sector by the banking operators.

Last edited: Monday, 20 February 2012

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