Non-performing loans in Albanian banking system hit new high
Xinhua, October 7, 2016 Adjust font size:
The non-performing loans in the Albanian banking system continue the upward trajectory, hitting a new high level in August 2016, data from the Bank of Albania showed Thursday.
The Bank of Albania's data confirmed that non-performing loans reached at the level of 21.44 percent, the highest level since May of 2015.
The non-performing loans increased by 0.29 percentage points on monthly basis what has raised concerns among the Albanian economy experts.
Some experts said Thursday that such figure is very concerning since the non-performing loans come mostly from the category of businesses which are failing to pay on time their installments.
The central bank of Albania expects the trend of non-performing loans to decline, although there may be fluctuations in their value.
On the other hand, the Albanian Association of Banks said that business climate and the general economic activity have had a negative impact.
The banks on their side express concerns regarding the execution of collateral in cases when the borrowers don't pay off loans.
Lending to the economy continues to grow, but this performance remains sluggish, governor of Bank of Albania said a day before when presenting supervisory council decisions. Endit