Loans, banks tighten up conditions
18/10/2011 00:00
Linda Rama: Between Family, Work and Albania’s Future 18/08 14:30
Taking a bank loan has become even more difficult in the third trimester
of the year. A recent survey of the Albanian Bank shows that private
banks have tightened up loan conditions, since they perceive an
increased danger in the economy.
The bank experts say that there are two main reasons that are obliging them takeing these measures with the business and consumer loans.
First, there is the situation of bad loans, almost 18% of the total. The second reason is related with a negative evaluation that the banks received for the macro-economic situation in the country. To handle these two risks, the banks have increased the interest rates for loans that they consider as risky, and also the request for the mortgage guarantees.
On the other hand, the individuals and businesses seem hesitant. The survey says that the demands for loans have decreased during July and September. Experts say that this situation will continue even harder during the last trimester of this year, especially for big businesses. The loans given for the economy have increased with 12.7% in the first eight months of 2011, compared to the same period of one year ago.
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