Banks will support “1 bln euro platform”, but not entirely: Brumbulli

Banks welcome the investment platform through public private partnership, symbolically called the 1 billion euro platform.

In an interview with TV Scan, the Secretary of the Association of Banks Spiro Brumbulli states that any project that can boost the economy and improve the country’s infrastructure in principle should be welcomed.

However, the Association of Banks states that, assuming that this platform will reach the size of 1 billion euros, it cannot be expected to be funded entirely by the banking system in the country.

According to him, no bank can finance such large sums in a few projects, either because of the opportunities, or because of the regulatory constraints that exist in concentrating exposure to clients or specific projects.

Mr. Brumbulli says most of the funding should come from private sector funding or by seeking alternative sources of funding, mostly abroad.

The Association of Banks reiterate once again their contradiction to the new tariffs of the private bailiff service.

Since June, banks have boycotted the private bailiff’s service and seek to change the instruction that, according to them, is in complete contradiction with the spirit of changes in the law by setting very high fixed fees for the bailiff’s service.

While addressing the need for growth in lending, Mr Brumbulli stated that banks are responding to market demand, but so far, this demand largely consists of short-term financing for circulating assets.

According to him, if the private sector will bring interesting investment projects, they will definitely find support, but at the same time emphasized the need for more sectoral diversification of the loan portfolio.

The Association of Banks supports Bank of Albania’s signals for the extension of the easing monetary policy.

According to Mr. Brumbulli, the economy still needs monetary stimulus, until it reaches potential growth levels.

Better economic growth, favorable interest rates and the reduction of non-performing loans are favoring better lending rates this year.

According to the Bank of Albania, in the third quarter of the year credit grew on average by 3.1%, thanks also to an improvement in lending to business.

However, banks argue that private sector demand is still pale, especially for long-term loans, while seeking more efforts to mitigate barriers that curb lending, such as informality in the economy, problems in the justice system and property registration, or high costs for bailiff service.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.