TIRANA, Aug 18 /ATA/- Developments in the credit portfolio confirm the improvement in its pace of growth in second quarter of 2019. Lek-denominated loans contributed most to the expansion of credit, although a growth in foreign currency credit has also been on a positive trajectory over the last year, Bank of Albania said in its recent Monetary Policy Report.
The low interest rates on lending to households, as well as the policies pursued by the commercial banks on lending to households in their income currency, are the main factors that support the shift from Euro to Lek-denominated loans.
The Lek-denominated loans portfolio accounts for 64% of the total.
The central bank, the Lek-denominated loans increased by 2.4 year-on-year in June.
The increase in Lek-denominated loans to households is one of the most tangible results of the central bank’s accommodative monetary policy. The main reason that has pushed households towards foreign currency borrowing in the past has been the cheaper price of the loan.
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