Government securities

Government securities are debt instruments issued by the Ministry of Finance (MOF) being a representative of the state, to finance short-term and long-term government expenditures. Government securities entitle their holders to receive cash revenue by discounting the price below the par value or by receiving a fixed annual interest rate.

The Ministry of Finance, jointly with the Bank of Albania, regulates the procedure and the conditions applied for the issue of dematerialized government securities on the internal market. Transactions in government securities are performed directly at the auctions organized by the Bank of Albania. In this auctions can participate banks, financial institutions, legal entities and individuals. Government securities are: treasury bills and treasury bonds.

First Investment Bank offers:

  • Transactions in government securities on a primary market;
  • Transactions in government securities on a secondary market;
  • Transactions in government securities on a retail market;
  • Operations related to transfers under government securities registers;
  • Opening and maintaining an investment intermediary's register;

Common Documents:

  • General Conditions, applicable to contracts for investment services and activities in financial instruments with First Investment Bank customers;
  • Financial instruments transaction order ;
  • Other documents (available at the Bank offices).

These General Conditions applicable to customers of FIBank for the delivery of services in investment and securities activities, governing the rights and obligations of FIBank as intermediary of investments of its customers regarding entering in the transactions with securities in primary and secondary market.

First Investment Bank, in compliance with regulations in force of Bank of Albania and Financial Supervision Authority in order to exercise to the Activities of Investment Intermediaries and in order to allow its present clients, as well as its potential clients, to make an informed investment decision, provides a description of the types and characteristics of the financial instruments offered and traded by the Bank, in its capacity as an investment intermediary, as well as the associated risks.

Charges and commissions are applied in accordance with the effective Terms and Conditions of the Bank.

Risk related to transactions with government bonds

Investment in government bonds mainly brings for the investor market risk, liquidity risk and issuer risk.
Market risk for government bonds is associated with the probability of increase (change) in market interest rates against fixed interest rate of debt securities. Depending on the maturity of government bonds, the shorter-term government bonds are characterized by lower market (interest rate) risk and vice versa - the longer-term government bonds bring higher market (interest rate) risk.
Liquidity risk for government bonds is lower than that of other debt financial instruments as the government bonds market is considered highly liquid.
The issuer risk related to government bonds is lower than that of other debt financial instruments, as the issuer in the face of the state and the risk of it to fall into financial difficulty and to be unable to repay the principal and the interests on debt securities is lower.

Albanian Government securities are considered as the lowest-risk investments because they are issued and guaranteed by the Albanian Government.

Financial Instruments

Quick Links