The increase in the basic interest rate by the Bank of Albania is showing its consequences to individuals and small businesses and more slowly to large businesses.
More difficult to get a home loan in Albania due to increase in interest rates
The increase in the basic interest rate by the Bank of Albania is showing its consequences to individuals and small businesses and more slowly to large businesses.
In the quarterly report on monetary policy, it is stated that loans to individuals experienced a strong increase in interest, on average by 8% in the fourth quarter of the year, from 6.7% in the first half of the year.
The strongest growth occurred in mortgage loans according to the bank, while consumer loan interests remained at lower levels at an average of 7.6%.
Although interest to buy houses with credit increases, house prices continue to rise, according to the ‘Fischer’ index published by the Bank of Albania, raising doubts about their financing.
Meanwhile, the increase in interest rates has been lower for loans in euros.
Interest was 5.4% for them in the fourth quarter, from the 4.6% level they were in the first half of the year. As for deposits, the average interest rate reached 1.5% in the fourth quarter from 0.6%.
Meanwhile, deposits in euros recorded an average interest of 0.7% while the rates for government securities, such as treasury bonds, after the strong growth experienced in the July-November period, have started to be reduced, as the market expects inflation to moderate in the coming periods.
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