TIRANA, June 12 /ATA/ – Albania’s economy is pursuing a positive growth and lending cycle, according to Klodion Shehu, Director of the Financial Stability Department at the Bank of Albania.
Shehu emphasized the real estate market’s vital role in financial stability, noting a sharp rise in property prices, especially in 2024.
In a bid to prevent related risks, the Bank of Albania will implement new lending limits starting July 1, 2025.
According to him, the central bank’s measures will include loan-to-value caps of up to 85% for first homes and 80% for second or rental properties in lek, and lower limits for loans in foreign currency.
Debt service-to-income ratios will also be restricted to 40% or less, depending on the property and currency.
Shehu stressed that most bank portfolios are already within these limits and the new measures are not expected to affect the middle class.
/j.p/u.sh/
