Private Banks – businesses relations in regard to outstanding loans are expected to improve after implementing a plan of measures, which will be compiled by the World Bank and Bank of Albania, say official sources.
In the latest report about outstanding loans, the Central Bank says that FinSAC project by the World Bank is helping it to identify the mayor borrowers and to compile strategic plans for recovering the situation between borrowing businesses and banks. The outstanding debts are taken mostly by a number of big businesses which are debtors in several private banks, according to the report.
Bank of Albania’s statistics show that the majority of outstanding loans are taken by 35 big companies or trade groups, making the 52.16% of the total of these loans, which in total reach the value of $550 million.
With the support of FinSAC project, the debtors will exchange information with banks and will be presented with various schemes for paying their debts to banks. In addition, the Bank of Albania has announced the launching of a new platform which will help in the compilation of plans which aim to solve the situation of outstanding loans.
Bank of Albania noticed in last December that the level of outstanding loans had decreased from 26.03% in December 2013 to 25.11% a year later. After the Supervisory Council of BoA approved several changes in the regulation “For the administration of loan’s risk”, starting from January 1st of this year private banks are obliged to erase the outstanding debts, 3 years after they are classified as “lost loans”.
News source/photo credits: ATA