Taking a bank loan for consume or home has become much harder for the citizens.
Bank of Albania most recent review says that the process for easing loan conditions for citizens has been slowing down in the last six months of 2010.
In the first three months of 2010, only 1.9% of the banks reported ease of loans for citizens, 12.1% less than the last six months of one year before.
The Albanian Bank says that this has happened due to the increase of bad loans; negative developments in real estate market and the decrease of individuals’ income.
According to Bank of Albania, taking a loan today is more difficult because banks lowered the payment terms and loan limits for each individual, by increasing at the same time the sum that citizens must leave as collateral.
According to predictions of banks that offer loans for citizens, these consume loan opportunities are expected to remain the same in the months to come, but loans for homes might get easier.
However, experts say that loans in general are expected to plunge, in ALL or foreign currency. This will happen because interest rates have been increased and loans result too expensive for the citizens to afford.