Tirana, December 16, 2015
The efforts of the government to decrease the external debt is being associated by the phenomenon of the abundance of liquidity in the financial market. This was stated in a press interview for Scan TV by the Director of the Department of Treasury at Union bank, Ilirian Ligacaj. According to Ligacaj, the pressure the liquidity performs in the market is being reflected in the prices.
Another phenomenon that has been noticed due to the government’s attempts to have a liquid banking system is the decrease of bank interest rates and bonds’ interests.
Ligacaj explains that if a banking system experiences a situation of sufficient liquidity does not mean banks will increase lending to businesses and individuals. The government has undertaken several measures in the past year in order to increase lending and to raise awareness to private banks on the importance lending has to the revival of the economy.
But, Ligacaj is of the opinion that lending will increase only by reasonable demands by the market, and this will come in conditions of an economic revival.
News source/photo credits: Scan TV, Images Money (Flickr)
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