Health and education, significant creditors

08/08/2011 08:15

Businesses of agriculture, health and education were the sectors with
the biggest increase of loans taken in banks for the first semester of
this year, as Bank of Albania statistics suggest, showing that the
attention has been diverted from “traditional” sectors, such as
construction or processing industry.

These three sectors have still a small portfolio compared to other sectors of the economy, but their part is increasing.

The Albanian business owed 351.7 billion ALL to banks by the end of June 2010, but agriculture loans increased with 55%, currently 4.6 billion, while the loans for private education increased with 23%, reaching 4.1 billion ALL.

The same happened with private health industry, which increased with 17%, reaching 4.7 billion ALL.

During loans booming period, 2004-2007, banks were excessively exposed to the construction sector through direct loans for companies and through real estate mortgages.

In the last three years it was a priority to divert the attention from construction to other sectors of our economy. The industry of private education was much developed in the last years, after the government issued a series of permissions for private universities, without any criteria, while the health care developed through foreign investments.

Today, the trade sector is the greatest borrower in Albania, with 121 billion ALL, or 34% of the total. Next comes the construction sector, with 67 billion ALL, or 19% of the total, and other important sectors remain the processing industry, with 15% of the total, and those of energy and water, with 7.2% of the total.

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