More loans to foreign companies
22/10/2015 15:05
Police mega-operation after 43 arrest warrants for names related to organized crime in several cities of Albania 17/05 15:39
While loans for the internal economy has dropped, Albanian banks have
given 500 million USD for foreign businesses mainly in neighboring
countries.
Official data from the Bank of Albania show that the financial market is facing a quick raise of loans given abroad, especially in Macedonia, Kosovo and other neighboring countries.
According to the Bank of Albania, the loan for foreign businesses doubled in June, reaching 58 billion ALL by the end of June 2015. This means that the Albanian banks have given seven time more loans abroad in one year than in the internal economy.
Direct crediting of foreign businesses is not a new phenomenon. It has existed even before, but in lower levels. Why banks are preferring to give a good portion of the Albanian savings to foreign companies as loans. According to the Bank of Albania, the main reason is the weak demand from the domestic market and bad quality in investment projects.
The massive capital exit reflects the fact that banks perceive insecurity in the domestic market.
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