TIRANA, August 14 – The private sector loan portfolio grew by around 14% in the second quarter from a year earlier. The increase reflects stronger bank financing for businesses and individuals.
According to Bank of Albania data, lending expanded across most categories. Businesses continue to show strong demand for loans, mainly for investment, liquidity needs and business expansion.
Meanwhile, banks report that lending standards for businesses remained broadly unchanged. Greater competition in the banking sector has also created more favourable conditions for borrowers.
Small and medium-sized businesses have also increased their demand for financing. They are using more bank credit to expand capacity, purchase equipment and develop their activities. Individuals are likewise seeking more loans, mainly for housing purchases and consumption.
At the same time, loans in ALL are gaining a larger share of bank lending. Financing in the domestic currency has grown at a faster pace.
The expansion of private sector lending is considered a positive sign for economic activity. It provides businesses with more opportunities to invest and expand, while supporting housing and consumer financing for individuals.
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