Bad loans reduced with 2.4%. Bank of Albania: “Strongest drop in 3 years”
06/08/2015 00:00
The Washington Agreement Must Be Reactivated! 06/01 19:04
Recent data from the Bank of Albania show that bad loans have went down to the lowest level of the past three months.
The bank says that bad loans went to 20.3% from 22.7% they were in the first trimester, and 24% on the same period of one year ago.
The 2.4% drop is the biggest plunge ever recorded since the crisis, and it is related mostly to the new regulatory measures that force banks to delete bad loans created more than three years ago.
The restructuring of bad loans has also help reducing the mas. The main object of the Bank of Albania is to reduce the number at 20%, a target which seems almost achieved.
The strong economic slowdown and the deep crisis in several sectors in 2009, increased bad loans rapidly, reaching 25% of the total, an alarming level for the IMF and WB and that increased unsecurity.
This forced banks to stop giving new loans, making it even harder for the economic growth.
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