The increase of long-term loans in Albania amounts to 2.3 billion euros

Long-term lending by the Albanian banking system is expanding this year. According to statistics from Albanian Banking Association, long-term loans with a maturity of more than five years at the end of August reached ALL 293 billion, from ALL 277 billion in the same period last year. These statistics show a significant change in the lending rate of the economy.

The growth of long-term lending is in itself a positive signal, as it proves that banks are willing to take on more risk in longer horizons. The growth of average portfolio maturity is also linked to sectoral lending developments and the purpose of lending use. Giving more long-term loans shows that banks have supported more new investment projects. The portfolio of long-term loans to business has reached ALL 154 billion, up by ALL 9 billion compared to the previous year. Meanwhile, short-term loans are in the form of bank advances or working capital.

A similar trend is being pursued by lending to households, where long-term loans have reached ALL 139 billion, seven billion ALL more than in the previous year. In households, the extension of long-term lending is mainly related to financing for the purchase of immovable property. The low interest rates offered by banks have led to significant lending growth in this segment.

SCAN

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