Lending on the rise by 6 bln ALL in just two months: BoA

Lending to the economy of Albania grew for the second consecutive month in August, showing a positive trend in the summer season.

According to data from the Bank of Albania, the total lending amounted to ALL 549.7 billion, four billion more compared to July.

In just one month, the loan portfolio has expanded by four billion ALL, while, including July, lending has increased by ALL 6 billion over two months.

These figures are a positive signal, given that the summer season is usually a period that is not characterized by high lending rates.

However, this year’s growth proves that lending is steadily improving as the economic environment has left behind some kind of uncertainty associated with the election process.

Lending is approaching a positive annual level.

The decline was reduced to only 0.1% compared to the same period a year earlier.

The healthiest segment remains lending to individuals, which continued its growth for six consecutive months.

The total value of loans granted to individuals by banks and other financial institutions has reached ALL 173 billion, up by nearly 5% compared to the same period a year ago.

Meanwhile, business lending gave further signs of improvement, reporting a growth of ALL 2.3 billion in August.

The data show that the second half of the year started with an invigoration of borrowing, which increases optimism for further improvement over the coming months.

In a press conference this week, the Governor of the Bank of Albania Gent Sejko expressed his confidence that lending is moving on the right track.

The higher economic growth is invigorating the market demand for funding, while the gradual reduction in the ratio of non-performing loans is expected to revamp banks’ offer.

SCAN

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