Number of consumer loans increased by 12.4%

Tirana, Albania
16 May 2016

The Bank of Albania says consumer loans increased by 12.4% in February of this year, compared to February 2015. The consumer loans’ portfolio is estimated to be EUR 280 million for Febuary 2016, says the Bank.

Experts say the number of consumer loans has increased due to the decrease of interest rates and the politics of private banks to boost loans for individuals.

Consumer loans’ interest rates are relatively low and affordable for Albanian consumers and this is another reason that has increased the amount of consumer loans given by banks. In most of the cases, according to experts, these loans are given to individuals who have current accounts in certain private banks. This allows banks to have their costumers under control and avoid scenarios when these consumer loans transform into non-performing loans.

News source/photo credits: ATA