Non-performing loans are increasing, affected by the crisis of strong price growth

2023-01-10 19:50:50Biznes SHKRUAR NGA REDAKSIA VOX
Non-performing loans are increasing, affected by the crisis of strong price
Illustrative photo

Non-performing loans increased slightly during November last year. Bank of Albania data show that non-performing loans reached 5.05% at the end of November, from 5% in October last year. 

This expansion of non-performing loans this period comes after 5 consecutive months of continuous decline. Meanwhile, compared to November 2021, the ratio of non-performing loans has decreased by almost 1.15%.

However, taking into consideration the successive crises and shocks that the Albanian economy has faced at least in the last three years, this indicator is apparently stable and turns out to be at the lowest historical levels.

The ratio of problem loans actually resisted the pandemic crisis, where at that time the Central Bank as a response took a measure to restructure loan installments.

So far, it seems that the effects of these crises, which have affected quite a few businesses and the budgets of Albanian families, have not been reflected in the banking system, but it remains to be seen whether they will materialize throughout the year 2023, starting from the great uncertainties that are accompanying the economy.

This is taking into consideration the increase in interest rates, but also the inflationary pressures with the massive increase in prices, which, even though they have shown a slowdown, continue to remain high./Tch


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