Albanians are not allocated housing loans - BoA: Only 22% of the total loan is taken for consumption financing
By the end of the second quarter of this year, about 67% of loans were taken by citizens for the purchase of a house and only 22% for financing consumption, while the remaining part was taken for other reasons. The latest data from the Bank of Albania show that the ratio between real estate and consumer loans has not changed in the second quarter.
Home loans continue to dominate in Albania, especially in Tirana with nearly 170 billion lek. In the capital, the demand for loans to purchase a home is higher than in any other region of the country, compared to consumer loans.
Korça is the only region in Albania where the value of loans for financing consumption is almost the same as that for purchasing a house. Official statistics show that 50% of loans in Korça are for housing and 46% for consumption. Meanwhile, the ratio is much higher in Tirana. About 74% of loans are for buying a house and 24% for financing consumption.
What about the growth rate?
From the first quarter to the second, consumer credit has gained more ground. Referring to data from the Central Bank, credit for consumer financing increased by almost 5.8%, while that for home purchase by 5.2%. Elbasan holds the record in terms of growth for both these types of loans, followed by Tirana in the case of home loans.
At the beginning of May, the Bank of Albania took a decision that envisaged the limitation of loans that banks provide to citizens to buy a first or second home. From July 1, the implementation of the decision to set ceilings on the value of loans that banks provide for the purchase of a home began. Specifically, to buy a first home, commercial banks would not provide loans of more than 85% of the value of the apartment.
Despite this, the figures show that home loan has not slowed down the growth rate much.
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