According to central bank, the value of non-performing loans is estimated at 346 million euros, down from 361 million euros in January 2024.

Bank lending to economy totalled 8.4 billion euros in the end of January, up from 7.4 billion euros in January 2024.

Experts think that reduced interest rates have lead to timely loan instalments, for both lek and foreign-currency denominated loans.

Central bank noted that depreciation of the national currency lek has also played a positive role in maintaining the solvency of borrowers with foreign currency denominated loans and income in local currency.

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Central bank noted that the non-performing loans ratio maintained a downward trend for the second consecutive month in October.

The decline in the non-performing loans ratio has been driven by the improved lending and expansion of the total loan portfolio. The loan portfolio to economy expanded by around five billion lek in October.

According to central bank, economic growth has downplayed the effects of high inflation and the increase in interest rates. Tourism and the real estate sector account for the main contribution.

BoA noted that depreciation of the national currency lek has also played a positive role in maintaining the solvency of borrowers with foreign currency denominated loans and income in local currency.

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According to the Bank of Albania, the non-performing loans ratio maintains downfall trend from 7.05% it was in July last year.

Central bank data show that the NPL ratio rose 0.2% in April and May, a period coinciding with the fast rise of inflation in the country.

Central Bank said that the value of the provisions calculated by the banks for loan losses was 1.25 billion lek in the first half of 2022.

The total loan portfolio increased by 12.3% in the end of June, in line with last year’s levels, before the economy was hit by the strong inflationary wave.

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According to the Bank of Albania, the ratio of non-performing loans decreased to 6.5%, down from 6.9% a month earlier.

BoA said that, 6.5% indicator is the lowest level of non-performing loans recorded since November 2008.

The improvement in the economic development has had a positive impact on the solvency of borrowers. In the second quarter of this year, Gross Domestic Product-GDP increased by 17.9% and exceeded the levels of 2019, before the pandemic. //a.i/

According to the BoA, at the end of April, NPL ratio dropped to 7.88%, from 7.96% at the end of March.

Central Bank data show that, at the end of April of this year, the Non-Performing Loans ratio to households was at 5.47%, while in March last year, at the time of the pandemic outbreak, it was 5.21%.

The Bank of Albania said that, in the 4-month period of 2021, banks provided ALL 21.7 billion in loans, marking an increase of 42% compared to the same period last year. //a.i/

According to the BoA, the minimal increase in non-performing loans does not deviate this indicator from the stable levels it has recorded in recent years.

The stability of the non-performing loan ratio was greatly affected by the easing regulatory measures undertaken by the BoA, including the postponement of loan installments for a period of 6 months, or the restructuring of loans, helping individuals and businesses to provide more liquidity during the difficult times of the pandemic.

At the end of January, the loan portfolio grew by 6.6% compared to the same period a year earlier. //a.i/

The Governor of the Bank of Albania, Gent Sejko stated at the today’s conference that, in 2020 the non-performing loans increased at the level of 8.1%.

“Non-performing loans represent a percentage that is expressed in relation to total loans and loans increased to 7.7%. Thus, in general, the financial sector, despite the crisis had positive results, good indicators of capitalization, profitability and lending,” Sejko said.

Two-quarter deferral of loan installment payments, regulatory changes for loan restructuring for 6 months to give banks proactive opportunities to restructure loans. This regulatory change was recently postponed for a quarter, until the end of the first quarter of 2021, precisely to help banks and businesses cope with the pandemic situation, to facilitate businesses to do restructuring, to extend deadlines in all possible forms by the banks for those customers who are affected.

In his remarks, Sejko did not provide figures on the level of growth of non-performing loans, but stressed that any forecast, not only for non-performing loans but also for economic growth, credit growth and all other macro indicators depends on the pandemic situation, on how long the pandemic will last, how much the austerity measures will be and how the economy will then react in view of the pandemic prolongation. //a.i/