The level of outstanding loans during April of this year decreased to 22.4 %, the lowest percentage since in 2012, announced the Albanian Association of Banks. According to this institution, the decrease of outstanding loans has come as a consequence of the strengthening of banks’ policies in giving loans to businesses and individuals and mainly by the return of outstanding loans.
The joint decision between the government and second tier loans in erasing the lost loans and the execution of collateral has also had impact in this regard. Following the government’s moves in helping banks to come out of this situation, even the Bank of Albania took measures in order to ease the restructuration of nonperforming loans.
As a consequence of the decrease of outstanding loans’ level, private banks have declared positive balances for the first four months of this year, increasing by 48% compared to the same period of 2014. Banks profits reached the amount of ALL 6.5 billion during this period, while the return of capital for the bank system was 20.8%.
News source: Scan TV
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