TIRANA, May 10/ATA/-The Bank of Albania’s easing monetary policy stance has stimulated the financial markets to reflect low levels of interest rates which have encouraged loans and investments.
The Bank of Albania issued the Quarterly Monetary Policy Report 2018. The Report makes evident that the interest rates on new deposits in lek resulted 0.98% in average in 2018 Q1, at levels close to the previous quarter (0.92%).
The interest rates on new deposits in euro were close to the average level of 2017 Q4, standing at 0.14%.
The spread between interest rates on deposits in lek and those in euro has maintained low levels.
The average interest rate on lek loans to the private sector resulted at 7.3% in 2018 Q1, from 6.8% in the previous quarter.
The increase of interests was formed mainly in the short-term maturity, while in the other maturities interests fluctuated near the levels of the previous quarters.
The average interest rate on loans over 1 year has fluctuated at the same level for more than one year.
The analysis by economic agents shows that the interest rates on loans to enterprises have increased. The average interest rates of loans to enterprises continue to be volatile for this segment, since they are often affected by the loans for liquidity purposes.
The interest rate on loans to enterprises averaged 7.7%, from 7.0% in 2017 Q4.
Within the enterprises’ segment, the interest rates on loans for investments did not change. Interest rates on loans to households fell slightly for mortgage loans and a rose slightly for consumer credit.
The average interest rate on new euro loans to the private sector decreased. It registered 4.0% in 2018 Q1, remaining slightly under the 4.3% average level of 2017 Q4.
By purpose of use, interest rates on loans to enterprises for investments and to households for consumer credit decreased.
The spread between the average interest rate on loans in lek against those in euro remains low, despite the expansion registered in the last months. Meanwhile, the spread between interests on mortgage loans has narrowed in these months, reports the Bank of Albania. e.xh/ /a.g/p.s./
