TIRANA, May 9 /ATA/ – Commercial banks operating in Albania increased lending to the country’s private sector in the first quarter of 2025, underpinned by the Bank of Albania’s monetary policy and stimulating financial environment by maintaining low interest rate.
Central bank data show that loan portfolio for the private sector rose 16.7% year-on-year in the first quarter of this year.
Lending growth covers a broad base and high diversification in use, with the rapid growth of investment credit standing out.
Lending for the real estate sector, construction and tourism lead growth, with the national currency-denominating loan portfolio increasing.
Central Bank also said that the non-performing loans ratio hit a record low to 4.02% in March 2025.
The Bank of Albania noted that the increased lending to economy is driven by the upward trend of the country’s real economy, particularly tourism, services and real estate sector.
The increased lending is also attributed to the low interest rates and the central bank’s accommodative monetary policy.
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