TIRANA, August 14 – Banks lowered interest rates on several major lending segments during the second quarter of the year. However, consumer loans and euro-denominated mortgages for individuals followed a different trend.
Bank of Albania data show that the average rate on new ALL loans fell to 6.3%, from 6.5% in the first quarter. For small businesses, loans of up to 35 million ALL carried an average rate of 7.1%, down from 7.8%.
Meanwhile, the average rate on new ALL loans for individuals fell to 3.8%, from 3.9%. Consumer loans were an exception, with the rate rising to 8.7%, from 8.4% in the previous quarter.
Euro lending also showed mixed trends. The average rate for businesses fell to around 6%. However, euro-denominated mortgages for individuals became more expensive. Their average interest rate reached 5.2%, up from 4.9%.
As a result, borrowing costs are moving in different directions depending on the borrower, loan type and currency. For businesses, lower rates could provide more room for investment and expansion. For individuals, the choice of loan product and currency remains important in determining borrowing costs.
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