TIRANA, July 26 /ATA/ The banking sector continues to apply loose mortgage eligibility requirements , as the increase in interest rates from central banks on new loans has not been fully reflected.
In the first 5 months of this year, the banking sector disbursed 19.6 billion fresh mortgage loans, the Bank of Albania announced.
Compared to the same period a year ago, mortgage loans increased by 5%.
Bank experts say that one factor that is driving the growth of mortgage loans in euro is the exchange rate. The two-digit drop in the euro-lek exchange rate has made the loan more affordable for those borrowers who get paid in the local currency.
Meanwhile, the Bank of Albania’s last survey of lending activity showed that lending requirements for individuals were relaxed in the second quarter of the year. The relaxation of standards was observed in both categories of the loan, both in mortgage loans and consumer loans.
/r.e/sm/
