Bad loans keep growing
16/11/2014 00:00
Constitutional Court returns passport to opposition leader Berisha but house arrest remains in force 21/11 21:17
Although the government has paid 260 million USD of due debts to businesses, the bad loan level keeps growing in banks.
Recent official data from the Bank of Albania show that problematic loans reached 24.9% from 24.06 that they were in the second trimester.
The government has planned to spend 35 billion ALL of due debts to businesses, a figure that takes 2.5% of the entire GDP.
According to the International Monetary Fund and the Ministry of Finances, the payment of due debts has created a good liquidity situation in the market.
The IMF says that this has improved the financial situation of businesses by helping the economy to grow. But the effect in reducing problematic loans has been insignificant.
This has created concerns even among the MPs of the majority, who asked a detailed report from the Ministry of Finances for the payment of debts and its effects in the national economy.
Albania has the highest level of problematic loans in the region. The IMF says that reducing them is critical not only to unblock the crediting of the economy, but also for recovering it.
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