The Ministry of Finance and Economy has announced the multinational investment bank and financial services company Rothschild & Co as the winner in a tender for financial consultant of the country's public debt.

Rothschild & Co will be the institution that will provide financial consulting for the management of government debt. The growing trajectory of Albania's public debt, which is expected to exceed the level of 80% of gross domestic product (GDP) this year, as well as the need for additional borrowing in international markets, also within this year, has forced the Albanian government to focus on the public debt.

"Given the sensitivity of financial markets due to internal and external factors, the Ministry of Finance and Economy intends to receive financial advisory services related to public debt management, in order to provide the necessary borrowing funds, the assessment of its risk and cost, medium and long term, as well as the development of the government securities market, increasing its instruments and expanding the investor base,” the ministry said in the tender document.

The limit fund for the assignment amount to Lek 81.8 million, value-added tax excluded, the Ministry of Finance said.

The duties of the financial advisor for the management of the public debt of the country will be several, but point 1 and point 6 of the contract stand out. Point 1, among other things, emphasizes that the financial advisor will have the obligation to help the Albanian government in diversifying instruments of borrowing, in different currencies, which signals that the Albanian government is seeking external financing outside the euro, including previously untouched markets. Point 6, meanwhile, refers to the Eurobond, where the Ministry of Finance and Economy states that: “Depending on market conditions, it identifies, structures and implements alternative financing solutions, if the Eurobond market does not adapt to the financing needs of the Ministry of Finance and Economy .”

Despite the fact that the Albanian government intends to issue a Euro 500 million Eurobond this year, a non-fulfillment of objectives, such as a high interest rate, or failure to meet the need for financing, may force the authorities to seek alternative ways, with the help of debt financial advisor .

Rothschild & Co is a multinational investment bank and financial services company, and the flagship of the Rothschild banking group controlled by the French and British branches of the Rothschild family.

The banking business of the firm covers the areas of investment banking, restructuring, corporate banking, private equity, asset management, and private banking. It is also known to serve as the advisor and lender to governments and major corporations. In addition, the firm has its own investment account in private equity.