Loan crisis returns, 1.2% drop in August
01/10/2015 15:15
The Washington Agreement Must Be Reactivated! 06/01 19:04
Loans turned in negative terrain once again for the first time since
past July, dimming hopes for leaving the stalemate that has went on for
three years.
Official data from the Bank of Albania show that loan for economy in August was1.2% lower than the same period of one year go.
From 556.8 billion ALL that it was in past August, the total stock of loans that banks have for the economy went down to 550.18 billion ALL this year.
The Bank says that the loan from the beginning of this year has increased only in March and May, and has dropped for the next six months.
Data show that this shrinking effect was caused by loans for businesses, which has reduced with 3.7% in annual terms, or 100 million USD.
The developments of the banking market this year have rejected the expectancies of the Bank of Albania for reviving loans, after a long stalemate period.
Different from the predictions, the data show that loans remain in crisis, stopping the potential of the economy to grow more quickly.
The Bank of Albania has calculated that the loan progress is a defining factor for the economic growth. A series of studies have concluded that when loans widen, the economic growth benefits 1.5%.
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