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E-TJERA

The growth of credit for individuals does not stop, but businesses are holding back

Politiko 2025-05-29 15:01:09
The growth of credit for individuals does not stop, but businesses are holding

 

Credit to the economy slowed slightly in April, but so far this year it continues to be at historically high levels.

According to data from the Bank of Albania, new loans granted by the banking sector amounted to 129.8 billion lek, down 3.8% compared to April last year.

However, the progressive performance of the first quarter remains positive this year. The banking sector disbursed a total of 129.8 billion lek in loans, an increase of 10.9% compared to the same period last year.

Credit growth this year is being driven primarily by individuals, while lending to businesses has slowed from last year's rapid growth.

For the first four months of the year, individuals received 42.9 billion lek in new loans from the banking sector, a value that increased by 26.4% compared to the same period last year.

Credit has continued to grow at a high rate, both for financing housing purchases and consumption. The continued rapid growth of housing credit has concerned the Bank of Albania, which this month imposed several restrictive measures on this product, which will come into effect in the second half of this year.

Meanwhile, credit to businesses at the beginning of the year is at levels similar to a year ago. For four months, the banking sector provided 83.3 billion lek in new loans to businesses, with a modest annual growth of 0.4%. Unlike what is happening with individuals, real estate loans to businesses this year are showing a significant decline, after having recorded a very rapid growth last year.

Credit to the economy continues to grow, also measured as portfolio surplus. At the end of April, the total portfolio reached approximately 872 billion lek, up 13.1% compared to the same period last year. Growth has slowed slightly from the 13.3% level a month earlier.

In the private enterprise segment, the loan portfolio is up 12.4% compared to a year ago. Meanwhile, for individuals, the loan portfolio is up 15.4% compared to the same period last year./ REL

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