Lending to the economy decreased by 1.2%

Bank of Albania says lending to the economy reached the value of ALL 550.2 billion by the end of August, circa ALL 104 billion less compared to the amount of lending in July of this year. According to figures published by the Bank, in annual terms lending to the economy decreased by 1.2% during August.

This means lending to the private sectors by second tier banks is yet going through a tough period and that the request for loans still remains at low levels. Experts allude that businesses are financing their investments with their savings in order to avoid loans by banks.

Bank of Albania has undertaken several measures in order to increase lending to the economy as a catalyst for the revival of the economy. One of the most important reforms in the banking system has been the erase of nonperforming loans by private banks’ balances and measures to decrease the level of these loans.

News source/photo credits: ATA