Albanians "abandon" short-term credit - BoA: It drops to 198 billion lek in June. Medium-term credit gains more ground
Albanians are increasingly taking out long-term or medium-term loans, while giving up short-term loans. The latest data from the Bank of Albania shows that total long-term loans reached 552 billion lek in June, an increase of almost 1.9% compared to May.
Long-term loans are those with a repayment period of over 5 years. Most citizens and businesses choose this type of loan because the installments spread over a long period of time are lower. This is also because Albanians mainly take out loans in large amounts, such as for the purchase of real estate, and the shorter the repayment period, the higher the monthly installment for them.
Taking out a short-term home loan is unaffordable for most families, as the monthly installment will be very high and will create difficulties in covering their daily expenses. Meanwhile, interest rates are also slightly lower in the case of long-term loans, as they are backed by collateral.
On the other hand, figures from the Bank of Albania show that citizens are moving away from short-term credit. Medium-term credit reached a figure of 127 billion lek, increasing by 2% compared to May, while short-term credit fell to 198 billion lek, a decrease of 0.2%.
Medium-term loans are taken for a period of 1 to 5 years, while short-term loans are taken for a period of up to one year. This type of loan is usually smaller and is used to finance consumption. As a result, the installments do not weigh heavily on the pockets of citizens.
Compared to home purchase loans, consumer loans to cover citizens' personal needs for the purchase of professional equipment, home furniture, education, health, vacations, food, car purchases, and others, are less in demand.
Higher demand for home purchase loans leads to an immediate increase in long-term loans.
Consumption growth filled the state coffers - 7-month period, 301 million euros more in the budget
The state budget collected 432.7 billion lek in the first 7 months of the year, registering an increase of approximately 30.1 billion lek or 301 million......
Emergency intervention at the Milot Bridge - Tender for the works opens, will last 8 weeks from the signing of the contract
With a limit fund of 107.6 million lekë, the Albanian Road Authority has opened the tender for emergency interventions in the Milot Bridge over the Mat......
Finished products, in world markets - Agro-industrial exports increase, Albanian wines find more space
The agro-industry sector has also followed the trend of increasing exports this year. Data from the Ministry of Agriculture shows that the agro-industry......
The world's oldest person turns 116 - Ethel Caterham was born 5 years before the start of World War I
The world's oldest person has celebrated her 116th birthday in Surrey. Ethel Caterham became the world's oldest person in April, following the death of......
Femrat mbajnë peshën kryesore në bashkitë e vendit/ 77% e stafit me gra, kryesojnë ato në shërbime sociale
Një raport i publikuar UNDP për sa I përket punionjësve të 12 bashkive kryesore ka zbuluar se 77% e stafit të bashkive në Shqipëri janë femra, duke treguar......
Slight fluctuations in the foreign exchange market – The Franc strengthens while the Pound loses points!
The US dollar has not registered any fluctuations in its price since the previous day this morning, being bought again at 82.6 lek and being sold at 83.9 lek......
Fires "surround" Spain - Around 400,000 hectares have been burned by flames, 37 arrests
Spain continues to battle one of the most devastating wildfire seasons in decades, despite temperatures beginning to drop across the Iberian Peninsula. Wet......
Formalization in the labor market increases - In 7 months, over 1,300 informal workers enter the scheme
The action against informality in the workplace, as one of the priorities of the Albanian government, seems to have borne first fruits. The risk-based......
