TIRANA, May 12/ATA/ The second-tier banks continued to finance the private sector in the first quarter of 2022.
The Central Bank of Albania said that the annual credit growth for the private sector in March of 12.8% was about 2 percentage points higher than at the end of last year.
The expansion of the loan portfolio is observed in all categories, but it is more evident in foreign currency loans and loans to households.
This expansion was supported by both the improvement of banks’ balance sheets and the increased demand for financing of these segments. In relation to GDP, credit to the private sector reached 38.5%, remaining on an upward trajectory over the last year.
Lending developments by currency show an acceleration of the growth rates of foreign currency lending to 16.3%.
The increase in foreign currency credit has reflected the increased demand from businesses for working capital, as well as the increased demand from households for house purchase. On the other hand, Lek lending has shown slower growth rates, at 9.6%, compared to 10.1% in December 2021.
At the end of the first quarter, Lek loans accounted for a slightly higher share than foreign currency loans, at 51% of loans to the private sector. /a.a/p.s./
