400 million euros in microfinance loans - In 2024, the sector's portfolio grew by 12%. It continues to be the main lender in agriculture
The microfinance sector, i.e. non-bank financial entities, savings and loan associations and their unions, disbursed around 400 million euros in new loans in 2024. According to preliminary data collected by members of the Albanian Microfinance Association, the sector's loan portfolio grew by 12.2%, in a trend similar to last year's growth.
More loans were granted to small and medium-sized businesses. Specifically, loans to businesses increased by 5% compared to last year in terms of outstanding balance, while it slowed down by 6% in terms of the number of active loans. Among the factors that have influenced this result are the increase in competition from the banking sector, the increase in the average loan value (from 7,500 euros to 8,400 euros per loan), as well as the decrease in demand, especially in the micro segment.
About 25,000 family businesses are supported by microfinance each year, while for every loan given to a start-up business, 3 jobs are created. According to microfinance members, the sector's activity is supported by capital accounts and loans taken from investors, or the banking sector, while sovereign schemes offered by the government remain the exclusive domain of the banking sector and do not help mitigate the costs of credit for the segments served by microfinance.
On the other hand, new loans to individuals increased by 24% in both volume and number. The average loan granted to individuals remains at the same level as in 2023 at 82 thousand lek.
Microfinance continues to be the main lender in agriculture, due to its business model and presence in rural areas. Agricultural credit expanded by 31% in 2024, while the average loan granted remained at around 2,800 euros per loan. The number of active clients in Other sectors that have been supported with financing from non-bank financial institutions are services, including tourism, trade and vehicle repair, and construction.
As for non-performing loans, they remain stabilized at 6.28%, demonstrating good risk management practices due to the highly diversified client base.
Poll
Istanbul Mayor Arrested – One of Erdogan's Main Rivals!
Turkish police on Wednesday arrested one of President Recep Tayyip Erdoğan's main rivals and Istanbul mayor Ekrem İmamoğlu, amid a major crackdown on the......
New rules for tour operators - “Technical managers with experience in tourism, diploma and foreign languages”
Businesses that offer tourism services will be required to have as a technical manager an individual with special criteria, starting from a diploma in this......
The past "haunts" the future - Why do Germany, Italy, Japan still depend on the US nuclear shield?
Concerned by global instability, countries from Europe and Asia are drastically increasing their military spending. At a time when US involvement abroad......
After limited ceasefire, Russia and Ukraine exchange fire again!
Russia and Ukraine have launched drone strikes on each other's territory, hours after Russian President Vladimir Putin agreed to stop targeting Ukraine's......
Limited ceasefire between Russia and Ukraine - 30-day pause on attacks on energy infrastructure!
US President Donald Trump and his Russian counterpart Vladimir Putin agreed during their phone call on Tuesday to seek a limited ceasefire against energy and......
What happened in the foreign exchange market today? – Dollar, Franc and Pound recover!
The US dollar has had a slight increase in value this morning, as compared to yesterday it was bought today for 90.8 lek and sold for 92 lek according to the......
Ifo lowers forecast for German economy - Weak industrial demand and tariff risk among main factors
The Munich-based Ifo Institute for Economic Research has lowered its economic growth forecast for Germany in its latest published report. The institute now......
"NATO's strategic asset thanks to investments" - Prime Minister Rama and Minister Vengu, at the Kuçova air base
Prime Minister Edi Rama, together with the Minister of Defense, Pirro Vëngu, conducted an inspection at the Kuçova air base, which is becoming a strategic......
