Reduction of nonperforming loans will boost lending, Bank of Albania says

Reduction of nonperforming loans will boost lending, Bank of Albania says

Tirana, 11 August 2015/Independent Balkan News Agency

Bank of Albania says that the successful application of measures to reduce nonperforming loans, will make banks more eager to lend.

During the second quarter of the year, the nonperforming loans portfolio reduced by 2 points , mainly in response to the regulatory measures taken by the Bank of Albania at the beginning of the year. This is an encouraging signal for the financial statements of the banking system.

However, according to the approved cross institutional plan of measures, it should be based on legal improvements, which prevent nonperforming loans and enable a quick solution.

According to the Bank, at the end of June, nonperforming loans fell to 20.3% as opposed to 22.7% in the first quarter and 24% in the same period last year.

The main target of the Bank of Albania is to bring this figure down to 20% within this year. /ibna/