Albania to borrow 250 mln euros via Deutsche, Alpha
by Andi Bega on 05/03/09 at 3:34 pm
TIRANA, March 5 (Reuters) – Albania will borrow 250 million euros through Deutsche Bank and Greece’s Alpha Bank in a syndicated loan to fund its budget deficit, the Finance Ministry said on Thursday.
‘The best offer was the one presented by Deutsche Bank (nyse: DB – news – people ) and Alpha Bank. The Finance Ministry will give these banks the mandate to secure the requested financing,’ the ministry said in a statement.
Albania received offers from seven international banks for the syndicated loan after it decided last year to scrap plans for a debut euro bond issue of 300 million euros because the market was unfavourable.
The ministry said it would recommend that the banks include ‘Raiffeisen Bank and Credit Suisse , which have made competing offers, in the financing.’
‘The high interest of important international banks to take part in this financing is an expression of confidence in the Albanian economy,’ the ministry added.
Albania received offers from J.P. Morgan, Citigroup (nyse: C – news – people ) , Deutsche Bank, BNP Paribas (other-otc: BNPQY.PK – news – people ), Raiffeisen, Credit Suisse and Alpha Bank , Greece’s third-largest lender.
The International Monetary Fund sees economic growth in Albania, which holds elections on June 28, falling below its 3.7 percent forecast as foreign investment, exports and remittances by migrant workers fall this year because of the global economic slowdown.
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