TIRANA, July 10 /ATA/ – The ratio of non-performing loans (NPLs) in Albania’s microfinance sector fell to 12.05% at the end of 2024, down from 13.9% in 2023, the Bank of Albania said in its latest report.
This improvement is attributed to increased lending and the exit of two microfinance institutions from the market, whose entire loan portfolios consisted of problematic loans.
Their licenses were revoked last year following legal actions against their shareholders for violations in debt collection.
Microfinance institutions disbursed 58.7 billion lek in loans by the end of 2024, marking a 9.5% increase compared to the previous year.
Microfinance loans account for about 7% of the total lending portfolio in the economy. The sector has expanded its lending focus beyond rural areas to other sectors like agritourism and services.
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