TIRANA, May 9 /ATA/ Loan restructurings dropped sharply last year.
According to data from the Bank of Albania, the restructured loan during 2022 was worth about 3.6 billion ALL, down by almost 87% compared to 2021.
Restructured credit accounted for only 1.3% of the annual flow of fresh credit or 10% of the total stock of non-performing loans.
The portfolio affected the most by the loan restructuring was that of loans for businesses and especially loans for the industry. Restructurings have affected to an approximate extent both the loan in Lek and the loan in foreign currency.
During the first half of 2022, customers mainly requested a change in the loan product, while in the second half of the year, loan restructuring was mainly done in the form of extending the maturity term and changing the principal.
The decline in restructurings is an indicator that the quality of the loan portfolio has not come under very significant worsening pressures. But, another reason why restructurings have dropped sharply compared to the previous two years, is the expiry of the temporary relief measures that the Bank of Albania applied during the pandemic period.
This instrument proved to be efficient enough to keep the indicator of non-performing loans under control.
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