Interest rate reduction

“Every decision for reducing the interest rate is good in general. It helps the economy and the credit in the local currency. This is related with the crisis context, but in its core, the interest rate reduction helps the economies”, declared Christian Canacaris, the head of the Austrian Bank in our country.

“But could the interest rate be lowered even more and faster?

“I cannot speak on behalf of the Albanian Bank Governor, Mr. Fullani, because he has more macro-economic data for taking this decision in consideration. It is impossible for me to give an answer now. I don’t know if this decision was on the right time or not, but every decision taken by the bank for lowering the interest rate has resulted effective”.

One of the dangers that Albania is facing now, is the shrinking of the credit level, due to the new rules of the European Commission, and those recently set by Bank of Albania. But Mr. Canakaris doesn’t predict negative effects.

“There is no negative effect in lowering the credit. On the other hand, I think that these rules have been set in time, because Bank of Albania must have control on other banks, and this means more capital for the banks, and hence, more credit”, he argued.

“Our bank will continue the credit, because without loans there can be no economic growth. But I can say that for continuing it we must need good clients, and for the corporations we need good projects. We will also give loans for the individuals, but they must have paying capacities. The criteria that we use will not change, will not be harsher. Let me remind that in 2008 we had a crisis in Europe, and since then we have adopted the new risk criteria, and the new rules will not bring any change”, Canacaris added.

By making a general evaluation of the economic situation in Albania, Canacaris declared that Reiffeisen predicted an economic growth, which will be positive, although lower than predicted.

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