Deleted non-performing loans in last two years amount to ALL 40 bln: BoA

Last year the banking system in Albania deleted ALL 12.6 billion of lost loans.

According to data from the Bank of Albania, loans classified as lost since more than three years continued to be in considerable proportions last year, being an important factor in reducing non-performing loans, especially in the last months of the year.

Adding deleted loans in 2015, for the last two years this figure amounts to the value of nearly ALL 40 billion, or around 295 million euro.

This figure symbolizes, in a large extent, the impact of the crisis in the banking system and, especially, the losses on a large scale in the corporate segment.

In early 2015, the Bank of Albania changed the regulation “On credit risk management”, determining that debts classified as lost loans more than three years ago should be removed from balance sheets.

Despite the great value of lost loans, the ratio of problem loans in the banking system remains very high, at around 18%.

Had the cleaning the balance sheets of lost loans not been done, non-performing loans ratio today would be at the level of 27%.

SCAN

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