TIRANA, June 14 /ATA/ Starting from July 1 of the current year, the banks will abide by the Central Bank’s measures that determine that the ceiling for the loan-to-collateral value for loans in the Lek currency will be 85% for the first home and 80% for the second home.
Director of the Financial Stability Department at the Bank of Albania Klodion Shehu told ATA that, “These measures are not expected to affect the overwhelming majority of those who will seek loans for residential real estate”.
According to him, the real estate market is very important for the economic development and financial stability of the country.
“In Albania, the residential real estate market has faced a stable demand and price growth in recent years, accelerated during 2024. This performance has reflected the increase in household incomes, competitive interest rates and the increase in lending by the banking sector,” said Shehu.
He said that these measures aim to prevent risks that may accumulate in this positive phase of the economic and financial cycle.
The Bank of Albania has decided to implement upper limits on two indicators that determine the standards of new residential real estate loans.
More specifically: the upper limit (ceiling) in the indicator “loan value to collateral value” for loans in Lek will be 85% for the first home and 80% for the second home or for rent, while in foreign currency it will be 75% and 70% respectively (in the conditions when these loans are also subject to exchange rate risk).
Shehu concluded by saying that the good solvency of borrower families is maintained and that lending levels remain stable and healthy. /j.p/p.s./
