BoA’s Sejko: Non-performing loans reach lowest level since 2011, at 17.4%
The percentile of nonperforming loans at the end of March fell to 17.4%, reaching the lowest level since July 2011.
After a meeting of the Supervisory Board, Governor of the Bank of Albania Gent Sejko said Wednesday that further reduction of non-performing loans will support the improvement of lending to the economy this year.
At the end of March, loans to the private sector marked an annual increase of 3.3%, but, however, Sejko called once again to the banks to be more active in lending.
Bank of Albania remains optimistic for the further revitalization of the economy this year, something supported by low interest rates and a continuous improvement in aggregate demand.
However, the Governor said that in the short term, growth may be compromised by political tensions, while in the longer term, risks may arise from external economic environment.
BoA’s Supervisory Council kept unchanged the key interest rate to 1.25% level.
The main forecasts concerning macroeconomic indicators remain essentially unchanged.
The Bank of Albania expects that inflation this year will reach 2.3%, while next year it will reach the target of 3%.
SCAN
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