Banks, 20 billion ALL damage

“The indicators of the banking system performance have been affected by the inability of executing the collateral. Bad loans have had a sensitive increase, and a considerable role in this indicator has played the inability of the banks for executing the collateral. Trust is one of most important impacts”, Bode declared.

But the head of the Finance Ministry also declared that a judicial and collateral execution system that is unable to execute the collateral, risks even more than this.

“The Banks administer the deposits of the citizens, and when it comes for the execution of the collateral, we are not talking about defending the interests of a private business, because it has a wide public impact. It is the interest of protecting the deposits of the Albanian citizens”, Bode declared.

The inability of the banks for collecting the collateral has turned into a main concern for the Central Bank. The Governor Adrian Fullani listed a series of causes that, according to the private banks, have put the system in a stalemate.

“The prolongation of the collateral execution procedure; courts that suspend the execution acts without fulfilling the legal criteria of collateral properties, and even by ignoring the bank arguments; failing to call the banks as third parties, by violating this way the principle of a normal legal process. Moreover, we note that the possibilities of having a trial suspended, even with a final decision, are higher when the collateral value is higher”, Fullani declared.

Bad loans in Albania consist 15% of the total, a number that is more than 70 billion ALL.

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