TIRANA, June 14 /ATA/ In April of this year, the non-performing loans ratio fell below 7.8%, hitting an all -time low since 2009.
According to the Bank of Albania, this is a positive indicator, as was the growth of credit.
Referring to BoA data, lending to private sector recorded an average annual growth of 7.5% in the first quarter of this year. This growth showed a broad base, driven by expansion of lending to both households and businesses segment. In this context, it is worth noting that the growth of loans for investment purposes is an encouraging development for future economic growth.
Also, the progressive expansion of the share of lek-denominated loans, an indicator which recorded 52% of the total in March, gives positive signals in terms of effective monetary policy and financial stability.
The Bank of Albania projections for the future remain positive.
The continuation of vaccination process in the country and in the world, the monetary and fiscal stimuli, as well as restoring confidence to historical levels will pave the way for progressive expansion of economic activity in the coming years.
The baseline scenario of the BoA forecasts projects a stable economic recovery during 2021 and 2022, after the contraction in 2020.
The expansion of activity is expected to be driven by acceleration of household consumption, exports of goods and services, as well as increasing private investment. In response, employment and wages are expected to increase as well, enabling return of inflation to target rate by 2022.
/j.p/sm/
