Bank of Albania announced lately that lending in ALL increased by 10% in annual basis during 2014, about 20 billion ALL more compared to 2013. In its report on economic indicators, Bank of Albania analyses the performance of lending in report with ALL currency.
As written in the report, foreign currency loans were 59.4% of the total lending for the economy at the end of November, from 61.6% registered at the same time of 2013. This is good news according to economy experts since the increase of lending in Albanian currency has been an objective of Central Bank, aiming to protect the bank system from the risks coming by exchange rates.
This has come as a result of ALL currency interest rates decrease, since lending in foreign currency has been seen by banks as very risky for lenders which have deposits in ALL. The latest economic developments in country have brought change in the curse of lending, by orienting it towards ALL currency.
If some years ago, individuals preferred to lend in euro since the interests were lower regardless the risks it had, the fiscal policies applied by Bank of Albania has brought the lowering of ALL currency interest rate. This has also affected in reducing the difference between EURO and ALL at minimal levels.