TIRANA, Aug 17 /ATA/ Loan for businesses has shown improved growth rates in the second quarter, the Bank of Albania announced in the recently-published report on lending activity in the country during the second quarter of 2022.
According to BoA, the expansion of the loan portfolio for medium and large businesses has offset the contraction of the small business portfolio. These developments have been reflected in higher loan growth rates in Lek and the maintenance of high levels of lending in foreign currency. However, increasing uncertainties and concerns over the possible slowdown of economic activity with the prolongation of the conflict in Ukraine have dictated tightening of lending standards for business by banks, as well as the increase in the cost of credit across certain segments.
The financing of businesses by banks has increased at high rates in the second quarter of the year. The annual growth rate of this portfolio of 12% has pursued the positive trajectory started a year ago with the post-pandemic recovery of economy. The quarterly dynamics show that this portfolio has increased by about ALL 11 billion. The expansion of credit for businesses has been observed in the medium and large business segment, while financing for small businesses has decreased and slowed down for micro businesses.
“Both of these segments are the categories most exposed to uncertainty and increased risk amid the new macroeconomic reality. Thus, loans for medium-sized businesses recorded an annual growth of about twice as much as in the first quarter. Meanwhile, large business lending has maintained stable growth rates, but in contrast to medium-sized businesses, this growth has been mainly in foreign currency,” according to the BoA.
/j.p/r.e/sm/
