Loans to individual increased by 5.3% compared with 2016: BoA

The loan portfolio in Albania is growing by 5.3% compared with the same period a year ago.

According to the Bank of Albania, in the first months of this year, growth was supported both by consumer credit and by the new financing for housing.

The analysis of the Central Bank states that the loan demand in this segment is supported by improved housing market and the expansion of consumption, but also from increased consumer confidence.

On the other hand, banks have responded to the growing demand with further easing of lending conditions for individuals.

The formalization of the labor market, together with a better performance of loans in this segment has made lending to individuals more attractive for banks.

The expansion of the loan portfolio continues to rely especially in loans in Albanian Lek.

At the end of February, loans to individuals in the country’s currency recorded an annual growth of 11.4%, the highest in recent years.

The low levels of interest rates in ALL and their approach to interest rates for lending in euro has increased the public’s preference for taking credit in local currency.

Banks expect that the second quarter will continue with the positive trend of growth of lending to individuals.

SCAN

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