Domestic debt in years and the analysis by quarter in 2015

Open Data Albania has researched the value of the domestic debt stock during 2010 – 2015 period. Part of the analysis is the structure of its holding in the domestic market as well as its composition by maturity.This debt is mainly divided into 3 to 12 month short-term Treasury Bills, 2 to 10 year long-term Bonds and the guaranteed debt, which is represented only by the debt taken by the Albanian Power Corporation, KESH.

The year 2015 ended with a total stock of domestic debt of ALL 551.37 billion. This value has been slightly decreased compared to 2014, but it records an increase of ALL 144 billion within five years. In 2010, the stock of domestic public debt was ALL 407.37 billion.

^{Source: Ministry of Finance
Comments and analysis: ODA}

A restructuring of borrowing over the years is already noticed, where in term of values the weight of long-term debt has been increased and short-term debt weight has been decreased. The total value in years raised on continues basis up to 2014, while it was reduced during the last year reflecting a tendency to meet the needs of lending abroad. The long-term domestic debt represented by bonds has been increasing year after year. The data concerning the amount of each debt instrument by quarters of 2015 have been analyzed in order to have a clearer idea about short and long term domestic borrowing. According to the analysis, the values of debt holding were higher in the third quarter of the year.

^{Source: Ministry of Finance
Comments and analysis: ODA}

^{Source: Ministry of Finance
Comments and analysis: ODA}

In the last quarter of 2015, debts, 7 and 10 year bonds were increased while the treasury bills with maturity decreased. With regard to short-term debt securities, specifically 12-month bills, a decrease from ALL 205.57 billion in the first quarter to ALL 190.52 billion in the last quarter of the year has been observed.

In the context of such a structure, the structure of domestic debt holders during 2010-2015 has been also scrutinized. Bank of Albania has shrunk its weight of debt holder, while commercial banks hold the largest share of domestic debt that is 58.2% of total debt though in 2015 the debt from commercial banks has been decreased against the total.

Domestic debt holders in value 2010-2015

^{Source: Ministry of Finance
Comments and analysis: ODA}

Domestic debt holders in value 2010-2015
<sup>Value in million ALL


Source: Ministry of Finance
Comments and analysis: ODA</sup>

From the above displayed data, a decrease in the value of the debt held by the Bank of Albania and the banking system over the years is seen. So with the growth of the total stock of domestic debt in the years, the two previous key holders as the Central Bank or commercial banks have not been funders of the new debt.

Non-bank financial institutions have increased almost eight times the amount of debt they are holding during the last five years. Currently, this category of debt run at ALL 93.62 billion or 16.98% of the total stock of domestic public debt in 2015. The value of debt held by individuals also increased from ALL 49.21 billion in 2010 to ALL 81.76 billion at the end of 2015.

^{Source: Ministry of Finance
Comments and analysis: ODA}

In total, Internal Debt accounts for about 53% of total public debt and 38.3% of GDP.