"The prices increased to compensate for the loan costs" - BSH: The burden of loan payment, heavier for small and large businesses
To offset the costs from the loan installment, many businesses increased the prices of their products in the first half of the year.
According to a survey carried out by the Bank of Albania, in order to cover the increase in the cost of servicing the loan, in 39% of cases, enterprises have mainly relied on increasing the price of products sold to customers, in 34% of cases they have reduced expenses and in 22% of cases they used different reserves.
Most of the enterprises, about 77%, declare that the loan payment reaches up to 20% of their income. The payment burden has been higher among small and large enterprises, where respectively 27% and 24% of them report that this payment exceeds 20% of income.
About 81% of enterprises report that the total value of the loan is approximately half of the enterprise's capital, 12% declare that it is almost the same as the value of the capital and 7% declare that this value exceeds that of the capital, thus resulting in an average loan/equity ratio of 78%.
As for the families, what was the burden of the loan against their income?
About 74% of families have stated that this loan installment is less than 30% of their monthly income, and this share has increased by 5 percentage points in annual terms. On the other hand, about 26% of families declare that this payment exceeds 30% of income and this share has remained 5 pp below the level of a year ago.
The data from the Bank of Albania show that the families that received a loan in the first half of the year, in 41% of cases, the families' borrowing was realized in the form of a loan from financial institutions, where 35% of the cases are in the form of a bank loan and 6% are in the form of credit cards and overdrafts.
In about 38% of cases, borrowing is declared in the form of cash and in 20% of cases in the form of unpaid goods.
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