TIRANA, August 15
According to the Bank of Albania (BoA), the portfolio of loans to enterprises showed improvement during the second quarter of 2016. Based on the official report on ‘Trends in Lending for Q2, 2016’ issued by BoA, the monthly expansion of loans for enterprises has been fluctuating, but the annual dynamic has confirmed the positive trend started in the beginning of the year.
It is important to highlight this dynamic is significantly more positive than 2015. The same data confirm that the expansion by 2.1 percent of this portfolio is supported mostly by the improvements in the trend of the loans for investments. Yet, second-tier banks continue to pursue conservative policies toward loans for enterprises, and their standards have tightened during the second quarter. On their part, enterprises financing demand is weak, especially in the corporation segment.
“Loans to enterprises showed 2.1% average annual improvement in April-May, compared with the 1.9% growth in the first quarter. However, enterprises’ demand for financing remained largely unchanged, while credit conditions tightened during the second quarter,” it was said in the report.
For the third quarter, the banks expect an easing in the lending standards and a growth of demand only in the segment of small and medium-sized enterprises.
News Source: BoA