Bank of Albania criticizes banks for lower credit

“I appeal the banking system to stop the passive stance. You must understand that it is now time to turn into the traditional business of a commercial bank, crediting the economy. Don’t keep being hostage of old practices of failed loans”, Sejko said.

In January, loans were 2.6% lower than one year ago. The Bank fears that the dropped credit might put the economic recovery into question.

“The Bank of Albanian chain of command is not happy with the current situation, while the reasons and claims that might raise will not justify the apathy and the lack of hunger for risks in investments. Our pressure will grow in this direction. I invite you to take correcting measures to better support the economy with credit”, Sejko declared.

But banks say they have reason to be careful, and the main reason, according to them, remains fear that loans will not be returned.

“The execution of collateral remains a danger. Their effective execution would bring a better performance of banks for reducing bad loans. Reducing problematic loans from 25% to 18% was the result of coordinated efforts of the Bank of Albania and other banks. It did not come as result of collecting debts, as it should have been”, said Christian Canacaris, President of the Bank Association.

The economic growth has become better in the past two days, but experts and the government itself fear that the economic recovery might slow down if there will be no support with credits.

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