"Boom" of loan requests from businesses - BoA: Even the rejection rate from banks was lower in October-December 2024
Banks have approved more business loans in the last 3 months of 2024, as a result of bank policies regarding collateral, business financial statements, lower risk perception regarding the future of the sector in which businesses operate, as well as elements related to the credit history of businesses.
In the October-December period, credit requests from businesses were also more numerous. Higher needs for financing working capital inventories and investments were the main reasons why they requested credit.
Lending standards for small, medium and large businesses remained almost unchanged in the last quarter of 2024. Lower costs and balance sheet constraints had a slight impact on easing credit approval criteria, but on the other hand, it was lower risk tolerance and lack of confidence in the borrower's solvency, or on the required collateral, that would influence the tightening of standards.
Also, the terms and conditions of the approved loan, as defined in the loan contract and which vary depending on the borrower's profile, have not changed significantly. In the judgment of the banks, the reduction in base interest rates, especially in foreign currency, as well as the performance of the exchange rate, contributed little to the relief.
In the first 3 months of 2025, lending standards for small and medium-sized businesses are expected to be eased, especially with regard to loans for investment purposes. Meanwhile, no relief is foreseen for large businesses. Recently, the Bank of Albania has also approved a new program to support micro, small and medium-sized businesses, where commercial banks will offer them loans with interest rates of up to 3.5% for a 5-year period.
Poll
Project, "National Single Window" is established - Customs, full access to information. Business costs are reduced by 10%
The Albanian government plans to create the National Single Window (NSW) within the next year. But what is it and what will it be used for? The Single......
“Collaboration for the Intelligent Age” - Theme of the World Economic Forum in Davos
Davos is welcoming global leaders for the World Economic Forum 2025 this week, meeting under the slogan “Collaborating for the Intelligent Age.” Discussions......
What were Albania's new markets in 2024? Albanian products "traveled" to Andorra and Cape Verde
In recent years, Albania has demonstrated an extraordinary commitment to expanding its trade horizons. With a strong focus on diversifying export markets,......
30 million euros of investments in the electricity network - OSHEE: Interventions include 3 components, improving service for citizens
The Electricity Distribution Operator has opened the international tender for the project “Energy Distribution Investment Program I”, inviting interested......
Banks "let go" of consumer loans - BoA: They perceive higher risk in home purchase loans
Albanians have sought more loans in the last three months of 2024, influenced by more favorable interest rates. According to the Bank of Albania's survey......
President Trump signs dozens of executive orders - Pardons Capitol rebels, withdraws from Paris Agreement, declares emergency on southern border
Upon taking office in the White House, United States President Donald Trump signed a series of executive orders. The first seven orders were signed at......
Mining, rules for exploration and discovery change - Changes also for suspension of activity and environmental rehabilitation
Exploration permits will be granted through an open procedure for all areas for which there is no geological information or in those areas for which there is......
Marco Alberti, the new ambassador of Italy in Tirana - The 53-year-old born in Zaire starts work in Albania
Marco Alberti is the new Italian ambassador to Tirana, replacing Fabrizio Bucci, whose 5-year mandate ended a few days ago. Born in the city of Bukavu,......
