Private crediting increases
01/10/2014 00:00
The Washington Agreement Must Be Reactivated! 06/01 19:04
The level of loans for the economy increased for the fourth month in
August, marking the longest positive trend in the past three years.
Latest data from the Bank of Albania show that only in August, the stock of loans increased with 6.2 billion ALL. This turned crediting into a positive territory for the first time in 2012, respectively 1.5% more than one year ago.
According to numbers, all this addition comes because of the private sector, especially business. Although some of it is connected with a light devaluation of ALL towards foreign currencies, the data show that businesses have increased their demand for loans and banks are showing to be more ready to credit them.
Bank of Albania experts say that the positive growth of loans for four months shows that this is not a temporary development, but a tendency that increases hopes that financial intermediation is leaving the stalemate.
The loan crisis started in 2012, when foreign banks, dictated by the European Union laws, started reducing their exposure to the Albanian economy.
Facing the lack of financing, businesses shrank their investments and individuals started consuming less, which hit the economy even harder, bringing the production growth to a historic low at 1%.
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