The non performing loans have been a crucial problem that the bank system in Albania faced in the past years, after the European crisis affected negatively to businesses and individuals’ budgets. The level of nonperforming loans decreased to 22.5% on February of this year, announced a Bank of Albania’s report on the balance of payments.
The report makes a comparison of the amount of nonperforming loans in the year we left and during the first three months of 2015. By the end of 2014, the level of nonperforming loans was 22.8%, but this percentage decreased in the beginning of 2015. According to the Bank of Albania’s statistics, the highest amount of nonperforming loans since 2000 was registered in the third quarter of 2014, at a level of 24.9%.
After being aware of this problem, the Central Bank applied a restructuration process of nonperforming loans in cooperation with private banks in the country and the effects of it resulted positive, since the level of nonperforming loans decreased by 2.1 points of percentage (from 24.9% to 22.8%).
The total amount of loans that are considered as lost loans by second tier banks are estimated to reach the amount of EUR 470 ml, circa 11.83% of the total amount of nonperforming loans.
News source: ATA
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