shocks – Albanian  Telegraphic  Agency. https://en.ata.gov.al News Agency Thu, 29 Apr 2021 16:16:11 +0000 en-US hourly 1 Flexible exchange rate to get over external shocks; Lek appreciated by 1.3% versus euro https://en.ata.gov.al/2021/04/29/flexible-exchange-rate-to-get-over-external-shocks-lek-appreciated-by-1-3-versus-euro/ https://en.ata.gov.al/2021/04/29/flexible-exchange-rate-to-get-over-external-shocks-lek-appreciated-by-1-3-versus-euro/#respond Thu, 29 Apr 2021 15:57:33 +0000 http://en.ata.gov.al/?p=144521 TIRANA, April 29 /ATA/ In its recently published report on the economies in the countries of the region, the World Bank estimated that the exchange rate in Albania continues to be flexible, which enables Albania to get over external shocks.

According to the WB, by the end of 2020, the local currency appreciated by 1.3% against the euro.

Meanwhile, the banking sector, which is well-capitalized and liquid, has helped to amortize the effects of the crisis.

The WB noted that credit to the private sector increased by 6.7 percent at the end of 2020, supported by credit guarantee schemes related to the COVID situation and low financing costs. In response to the pandemic, the BoA undertook such mitigation measures as moratoriums, loan restructuring and classification, some of which will continue until the spring of 2021.

But, according to the WB, the effects of the crisis on the quality of the loan portfolio are expected to become even clearer in the second half of 2021, with a possible increase in non-performing loans. /j.p/p.s./

 

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