Threat from reduced loans, Sejko: Revival will define economic growth

“Loans are currently suffering the low demand and conservatory policies of banks. We think that in 2015, loans will have a modest increase”, declared the Bank of Albania Governor, Genti Sejko.

The Governor said that the renewal of loans will be decisive for resolving the stalemate and accelerating the growth. According to him, this requires a lower risk that banks perceive in the Albanian economy.

“For this reason, the systematic reduction of credits should be treated as an issue of national interest, which should be object of the coordinated work between the public authorities in our country”, Sejko declared.

Besides the internal factors, the progress of loans also depends from the behavior of banks that come from the Eurozone and their plans for the region, including Albania.

“This underlines that the presence of foreign banks in the countries of the region is going under a very careful evaluation to define their effectiveness and progress”, Sejko declared.

The Governor declared that the Central Bank has undertaken a series of measures to reinforce the banking system, by increasing the requests for the capital and by reinforcing the supervision.

“We are making periodic analyzes with other processes too, which aim to realize a more professional evaluation of the financial situation and of the risks of the activity of special banks and of the banking and financial sector in general. Secondly, it is for treating and softening the risks for the stability of the financial system”, Sejko declared.

Loans for the economy increased with 2.1 % in the past year, but it went down in the first trimester of this year. The observation of the Bank of Albania warns that loans will not be easier for the next three months”.

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