4% of businesses borrow from informal sources - High production costs lead companies to the "door" of financial institutions
High production costs and access to financing have been some of the main problems encountered by businesses in the exercise of their activity during the first half of the year. The high interest rates at the beginning of 2024, or the tightening of financing conditions, have made it difficult for businesses to obtain a loan from banks or non-bank financial institutions, to cover the costs of labor production.
However, in addition to meeting short-term expenses, business borrowing is also used to make a long-term investment, or to pay off an older loan.
But how much was actually used and was this loan sufficient?
For 87% of businesses, the level of borrowing to finance their activity is adequate. During the period, about 57% of enterprises have continued to finance their activity only through sales, but the financing realized through the combination of sales with carried reserves, followed by the combination of sales with loans, is not left behind.
According to a survey carried out by the Bank of Albania, about 91% of borrowing businesses declare that they have turned to the financial system for loans, 4% have used informal sources, such as natural persons, other companies, unpaid goods and others. while almost 5% of them used a combination of formal and informal sources. The weight of businesses that declare only formal loans has decreased by 0.2 percentage points compared to the last six months.
Only a small part of businesses have turned to non-bank financial institutions for loans. More small businesses have requested loans from these institutions and this is because the banks perceive them with a greater risk than large businesses. Specifically, only 3% of small enterprises, 1% of medium-sized enterprises and 0.3% of large enterprises have received a loan from microfinance institutions.
Project-Budget 2025/ Rama: Second bonus for pensioners every beginning of spring
Prime Minister Edi Rama announced today in the Parliament that in parallel with the distribution of the bonus at the end of the year, the government will......
From traditional classes to "Smart Labs" - Digitization of education, 27 million euros for smart labs
The Council of Ministers has proposed the draft law "On the ratification of the agreement between Albania and the Development Bank of the Council of Europe,......
1/3 of the budget for the army - the EU is expected to spend around 400 billion euros on defense
The European Union is preparing to channel more than 390 billion euros in defense and security spending for the bloc. After the election of Donald Trump at......
How has this week started for major currencies?
The American dollar was bought today at 92.6 Lek and was sold at 93.8 Lek from last week, with a slight decrease in the quota according to the local exchange......
Year-end bonus/Rama: 15,000 ALL bonus for pensions up to 20,000 ALL!
Prime Minister Edi Rama announced today in the Parliament of Albania, that in the following days, the government will release a fund of 100 million euros for......
Report/ Europe's plans to continue relying on gas endanger climate commitments!
Growing gas power across Europe threatens to jeopardize climate commitments and lock out fossil fuels for decades, a new report has found. The briefing from......
American companies worried if China retaliates to fight Trump!
With President-elect Donald Trump's trade and foreign policy team taking a tough stance on China, US companies are increasingly concerned that a tough......
35 years since the fall of the Berlin Wall - The values of 1989 and today's challenges of democracy
The Economist Germany celebrated on Saturday the 35th anniversary of the fall of the Berlin Wall, which for decades divided West and East Germany. The fall......
