Savings and credit expanded by 6.2% during 2020 – Pandemic slows the growth, debt grows by 6.6%
Savings and loan associations continued to expand during the fourth quarter of last year. The latest data of the Bank of Albania show that the assets of these companies have reached the historical record figure of ALL 11.93 billion, or about EUR 9.6 million, from about ALL 11.23 billion that were in the fourth quarter of the previous year, before the pandemic of hit the economy. In annual terms, the growth of assets is fixed at 6.2%.
The previous year meanwhile, the increase was fixed at around 16%, which signals that the pandemic has given some kind of effect. Currently, there are 14 savings and loan associations and 1 union operating in Albania. The loan occupies the main part of the assets portfolio of savings and loan associations, with about ALL 8.5 billion, or about 71% of the total. Compared to the same period of the previous year, the increase of lending to members of companies is fixed at 6.6%, signal the data of the Bank of Albania for the 4th quarter of last year.
Despite the growth, this sector occupies a little more than 1% of the total credit of the banking sector in our country. Credit savings companies are important mainly to finance farmers or small businesses, especially in rural areas.
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