Banks Gave More Credit to Businesses Than a Year Before

Banks Gave More Credit to Businesses Than a Year Before

TIRANA, July 2

The credit for the economy was increased with a value of €80 million, in annual terms, registering after many years positive figures.  The official data from the Bank of Albania, show that in May 2019, the stock of credit that the banks gave for the businesses and individuals, reached a value of €4.48 billion, compared to €4.40 billion in May 2018.

According to data, the credit from the banks for private businesses in May 2019 was raised by €6 million and for individuals by €8 million, compared to the same month last year. The only indicator that showed a decrease, was the credit that the banks gave for the state societies.

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The loan for the latter was reduced by €8 million, compared to May 2018 and the main reason is the loans, that the Albanian Power Corporation paid off to the local banks, substituting them with a credit from the European Bank for Reconstruction and Development.

After 2012, the lack of credits was one of the factors that held back the economic development, where the businesses were reluctant to invest in new projects, whereas the banks were hesitant to loan money because they were afraid of the rise of bad credits. But the latest data from the Bank of Albania shows that after 7 years the credit for the businesses and individuals was positive, which is a good sign for the economy.

Source/ Top Channel

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