TIRANA, July 28 /ATA/ The Bank of Albania announces that non-performing loans dropped to the level of 5.2%, from 5.23% in May.
The Bank of Albania estimates that the increase in the ratio of non-performing loans was small and below last year’s projections.
According to BoA experts, this is attributable to the fact that: The performance of the economy in the first part of this year has been better than expectations, where tourism and the real estate sector have kept economic growth at positive levels even for the first quarter of the year.
Also, the increase in interest rates this year has slowed down significantly compared to last year’s rates.
It is estimated that the appreciating trend of the lek in the foreign exchange rate has also had a positive impact. This has improved the solvency of borrowers in foreign currency, but whose income is in Lek, mitigating the effects of the increase in interest rates for the euro.
/r.e/sm/
