According to the Bank of Albania, the increase in the yield on the T-bills explains a gradually growing interest in investing in Albanian government treasury bills and bonds.

The market is creating more favourable conditions for individuals and entities to invest their money, but, on the other hand, it is also causing significant increase in debt costs for borrowers.

“On the other hand, the yields on government debt instruments are used as reference rate applied to loans with varying interest rates. The increase in yields is also leading to higher loan interest rates in the periodic revaluation, according to the frequency provided under the contract,” Central Bank notes, adding that the rapid increase in the yield on government bonds is creating the conditions for the follow-up of the goal of monetary policy, which encourage saving amid rising inflation rate.

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