Bank of Albania’s Council of Ministers made public their latest decision on decreasing BoA’s interest rate on loans to 2.00%, in order to lower funds’ costs since this is expected to affect in the cut of costs for lenders.
Economy experts say this is a smart move of BoA, because it will stimulate country’s economic growth and the increase of consumption. The decrease of basic interest rate will lower the costs of loans taken from citizens in banks and will increase lending for businesses.
Bank of Albania is trying to ease the burden of loans for citizens, in order to give them the possibility to buy more in country’s markets. The increase of consumption is the basis of the economic growth, since it brings a revival of the economy and a more dynamic market and competition.
Lenders are not only citizens but also banks or businesses, which soon will feel the effects of this measure undertaken by Bank of Albania.
News source/photo credits: ATA
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