18.000 bad loans being executed: New law producing satisfactory results

Until 2016 banks have passed on 18,000 cases to private judicial bailiffs for the execution of non-performing loans.

The data come through an analysis by the National Chamber of Private Judicial Bailiffs, according to which currently the demand for executions by banks is over 20 thousand.

Problems in legislation have frozen for several years the execution of such a great number of non-performing loans, but it seems that the situation has begun to change with changes in legislation.

Such a trend is underlined by an official analysis of the Bank of Albania.

The ratio of non-performing loans in May reached the lowest level of the last six years.

According to the data of the Bank of Albania, non-performing loans accounted for 15.9% of the total, from 16.6% at the end of April.

Meanwhile, the latest data from the Central Bank show that this level in June reached 15.58%.

Non-performing loans did not fall below the 16% limit since May 2011.

Increasing efforts and measures of recent years are finally yielding steady results in lowering the level of non-performing loans.

The main measure was that of clearing the balance sheets from loans classified as lost since more than three years.

However, according to Bank of Albania’s analysis, loan restructuring as well as improvements in the process of collateral execution have had a positive effect.

SCAN

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