Bad loans, 1 billion USD of seized and unsold properties

“According to the private bailiffs, this is the value of properties that are being executed or that have been executed. Some of the properties have been sold, some have passed to the bank, and some have entered the second phase of auctions for another negotiation with the parts that own these properties”, declared Petrit Qarri, Chairman of the Chamber of Bailiffs.

By the end of the first half of this year, 29.2% of the total of bad loans that were sent at the bailiff office have been executed, Even after execution, most of them cannot be sold, but remain under the ownership of banks.

“There is no purchasing power, because, as we know, the buying power has fallen. Especially for immovable buildings. Another problem is the case that has been executed by the judiciary bailiffs. People are more prone to go towards them, although the price is very favorable”, Qarri says.

The inability to sell the seized properties has created another consequence for banks that not only cannot recover the money given in loans, but also must spend under cost.

“The properties that are sold through the bank or that change ownership are mostly administered by the bank. Their administration requires an additional cost from the bank, because they need to be maintained and preserved”, Qarri declared.

The Bank of Albania says that this is a phenomenon that should be monitored carefully, because the maintenance cost of thousands of properties might influence the finances of banks.

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