TIRANA, Aug. 14 /ATA/ – Albania’s private-sector loan portfolio grew by around 14% in the second quarter from a year earlier, reflecting increased bank financing for businesses and households, Bank of Albania data showed.
The expansion in lending covered most categories, with businesses continuing to report strong demand for loans, particularly for investment, liquidity needs and business expansion.
Banks reported that lending standards for businesses remained broadly unchanged, while increased competition in the banking sector helped create more favourable borrowing conditions.
Small and medium-sized enterprises also recorded stronger demand for financing, using bank loans increasingly to expand capacity, purchase equipment and develop their operations.
Households continued to increase demand for loans, mainly for home purchases and consumer financing. Banks said easier financing conditions and greater competition in the market had contributed to the trend.
Meanwhile, lek-denominated loans are accounting for a growing share of the banking portfolio, as lending in the local currency has been expanding at a faster pace.
The expansion of private-sector lending is seen as a positive signal for economic activity, creating greater opportunities for business investment and expansion while supporting household financing for housing and consumption.
/e.xh/r.e/a.f/u.sh/
