TIRANA, April 26 /ATA/- The ratio of non-performing loans has dropped to 11.1% at the end of 2018, illustrating the sustainable trend of progress made in this direction.
Bank of Albania announced on Friday that non-performing loan is dropping at satisfactory rates.
During the period, it has dropped by nearly 17% to the level of ALL 64 bn. In result, the ratio of non-performing loans dropped to 11.1% or 2.2 pp lower than the end of the first half of the year.
According to contribution, the decline in non-performing loans is attributed to payment for (about ALL 17.6 billion), the write-offs of the lost loans (about ALL 4.5 billion) and the restructuring. Since the beginning of 2015, it is estimated that banks have taken nearly ALL 55.5 billion in lost loans off their balance sheets. The reduction of non-performing loans was accompanied by faster reduction of credit risk reserves (provisions), which has led to a reduction of their coverage ratio by about 0.8 percentage points to 65.6%. Despite the decline in the provision coverage ratio, the equity coverage of net non-performing loans has improved. Collateral coverage also remains at high levels.
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