Lending is one of the most important elements for the revival of a country’s economy. Experts in this field have declared after the publication of a report by Bank of Albania that agriculture is the key sector of the Albanian economy and second tier banks should increase lending.
The report by Bank of Albania shows that lending for the agriculture projects is estimated to be circa 6.6 billion ALL for 2014, equal to 1.2% of the total amount of lending for the economy. The official figures published in this report also show a huge gap between the importance of the agriculture as a key sector of the economy and the lending amount for this sector. The agriculture ensures the 20% of GDP, equal to 1.8 billion EUR but the loan stock for this sector is only 45 ml EUR.
According to the experts, the data regarding agriculture show that it has much potential for the increase of lending but the addressing of the structural problems of this sector remains a problem.
Experts also say that the most efficient solution for the revival of the economy is to focus and pay attention to the producing sectors of the economy, especially the agriculture sector. In this respect, second tier banks have paid more attention to this sector by easing the lending procedures.
News source: ATA
Photo credits: Rex Turgano (Flickr)
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