TIRANA, April 10 /ATA/ Lending to the economy in euros has increased during the first months of this year.
The Bank of Albania announces that 52% of the new loan total, of 19.2 billion ALL, disbursed during this period by the banking sector, was in euro currency.
Compared to a year ago, new loans in euros increased by about 40%, continuing to show high growth rates for the second year in a row.
BoA notes that the loan in euros is playing a key role in the increase of lending to the economy.
According to BoA, in the last two years, even euro-denominated deposits are growing at a higher rate than those in Lek. This has increased free funds in euros for the banking sector, creating more supply for loans in the European currency.
In the European currency, the increase in interest rates has been more moderate, because the banking sector is very liquid in this currency, thanks to the high growth of deposits in euros. Also, the pressures to increase the cost of funds in euros have been a little easier, because clients do not have competitive investment alternatives, such as bonds and treasury bonds for investments in lek. In this way, the loan in euros seems to be growing, even in the inertia of the great desire of Albanians to invest in property.
/gj.m/sm/
