Investment crisis with loans
13/06/2014 00:00
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Businesses complain that the current interest rates for loans make it
impossible to fund new investments in the economy. Luan Bregasi, from
Business Albania, says that the crisis has reduced the profits from
investments, but interest rates are on the same level.
“If profit is 10% and the loan interest is also 10%, then there is no reason for businessmen to go to banks”, Bregasi declared.
According to the Institution of Statistics, the profit rate in 2012 fell to 6.7% of the spending. Selami Xhepan says that if interests don’t’ follow the same tendency, businesses will face difficulties.
“This causes a huge pressure with businesses. There will be more cuts, and this will bring other problems with the liquidity”, Xhepa declared.
The Bank of Albania has reduced the interest rate for the past two years, reducing the cost of money to 2.5%.
“Banks should consider this a lighter burden and share it equally with other economic agents”, Xhepa underlined.
“This means that banks should reduce interest rates and increase loans for businesses that will invest”, Bregasi declared.
The private investments in economy fell to 18% of the Gross Domestic Product during the last year, according to the International Monetary Fund, from 20.1% that they were in 2010.
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