The restructuring of the problematic loans that 30 biggest companies own
to banks has already started, while the Bank of Albania has issued a
unified regulation for all banks, how they should proceed.
Banks have agreed to renegotiate 90 million EUR that these companies owe to banks. Governor Gent Sejko said in the annual report that the Parliament must pass as soon as possible the bankruptcy law.
“For all cases without a positive perspective, the bankruptcy law will be another step of quality that will help the entire process, mainly banks and the financial system”, Sejko said.
The level of problematic loans for the past year dropped at 18%, but the risks remain. Although the situation is not alarming, the bankruptcy of “Kurum” would increase the bad loan level with 1%.
“This company is mostly exposed to international financial institutions, not the banking system. This company keeps paying their debts to the banks. As for the pessimistic scenario, if the company files for bankruptcy, this would increase the bad loans with 1%”, said Gent Sejko, Governor of the Bank of Albania.
As for developments, Sejko said that prices have remained stable and the economic growth is expected to be at around 2.7%. He added that the central banks plan to reduce the interest rate even more, to encourage economy fight low inflation.
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