Bank of Albania reports growing interest in loans in ALL
A report issued by the Bank of Albania indicates that both businesses and citizens are increasingly opting got loans denominated in Albanian lek.
Why is this relevant
The new trend of shifting towards lek-denominated loans shows that there is growing confidence in ALL its stability, but it also highlights a preference for local financing solutions.
Context
Throughout 2024 there has been a noticeable shift away from the traditionally preferred euro denominated loans and towards loans issued in lek. Data shows that lek-denominated loans now account for 53.7% of total credit, marking a 4% increase.
The Bank of Albania’s report on the loan structure by economic sectors for the year 2023 highlights a higher lending volume to businesses compared to individuals.
The most credited sectors of the economy continue to be Wholesale and retail trade with 30.3% of the portfolio, followed by Construction” sector at 17.3%, and Manufacturing with 12.4%.
Analysis of loans by type of borrower reveals a higher concentration in the private sector, accounting for approximately 60.8%. Loans to individuals have increased by 23 billion lekë, while loans extended to the public sector have decreased by 8.4 billion lekë.
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