Bank property on stock

“The previous law was not that efficient, and this made some of the properties to be registered without going through the banks, and the debtors are not recognized anymore. This increased the stock and if the amends will not reach 40%, there will be a change in the sale of assets that have been placed as guarantees for the banks”, declared the Chairman of the Chamber of Bailiffs, Petrit Qarri.

Qarri adds that the market was facing a stalemate even for another reason, which is related with the suspension of auctions by the Courts.

“It had become gangrene. There’s a great percentage of cases that have been suspended with the creditors”, Qarri declared.

The fast growth of bad loans has created a large stock of seized properties. Most of them come from businesses that have not paid their loans.

“Most of it comes from companies, and most of the debtors are physical persons”, Qarri declared.

The new Code of the Civil Procedure gives banks the right to reduce the property value to 40%, and makes it impossible for borrowers to appeal the decision at court, with the hope to block the sale. The changes planned by Bank of Albania with the help of the World Bank will be voted this Monday at Parliament.

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