The final destiny of 35 companies with the biggest weight of bad loans in Albania will be decided within December.
Top Channel has shown the measure plan that authorities will bring to life to resolve one of the biggest stalemates of the economy, that of bad loans.
The plan, signed by the highest authorities, respectively Prime Minister Edi Rama and Bank Governor Gent Sejko, foresees 12 measures. The most important is the treatment of problematic borrowers.
The Bank of Albania, in cooperation with the Association of Banks and Assistance of the World Bank will decided within December how many of the 35 companies will be seized, bankrupt or restructured.
Within December 2016, the entire plan needs to be executed. Official data show that 35 companies in question, whose names have not been made public, have more than 52% of the total of problematic loans.
This means that these companies or trade groups have a total of 65 million ALL, or 550 million USD of bad loans, turning in to the main sources of insecurity in the financial system and national economy.
The problematic borrowers, while being one of the most important points, are not the only ones. The authorities foresee 11 other detailed measures from the Civil Code, up to changing the bailiff procedures in order to make them more efficient.
The new bankruptcy law will be approved within the year. It makes it easier to put financially dead companies in bankruptcy. Authorities say it is important to resolve the stalemate created by bad loans in the economy.
The next months are expected to be intensive. Most of the measures for reducing loans have the end of the year as final deadline. Bad loans by the second trimester were 20.3% of the total, or 110 billion ALL.
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