On a report published on February 20th, Bank of Albania issued data on trend of lending in bank system in country, referred to lending based in certain currencies. Although lending in ALL is about 30% more expensive than taking a loan in euros, the lending activity is heading towards Albanian Lek, say experts.
Interest rates will decrease for lending in Albanian lek in the first quarter of this year, and lending in euros will decrease as well since interest rates are expected to increase. The decrease of interest rate and the displacement of bid in Albanian currency have led individuals and businesses to evaluated profits that come by lending in ALL and to avoid the risk of currency exchange.
Despite expectations, lending in euros is cheaper than lending in ALL, in average terms. According to Bank of Albania report, in November 2014, a loan in EUR was issued for all the maturities at an average interest rate of 6.2%, meanwhile for lending in ALL the average interest rate was 8.2%. The difference of interest rates for lending in ALL and EUR has continually reduced, since in 2010 lending in ALL was 70% more expensive than in 2015.
News source/photo credits: ATA
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