Zero loans for business start-ups in 2025/ Businesses rely on overdraft, 42% of loans go for liquidity
In 2025, lending to businesses in Albania has increased significantly, reaching 296.2 billion lek, from 268.9 billion lek a year earlier. However, the structure of the use of these funds shows that the main priority of businesses remains liquidity management and investment in real estate, rather than the expansion of production activity.
According to data from the “Bank of Albania”, about 42% of new business loans during 2025 were used for overdraft, confirming the high dependence on short-term financing to cover daily cash needs. Working capital accounts for 20% of total credit, which indicates that a significant part of the financing is used for the basic functioning of the activity and not for long-term investments.
At the same time, real estate loans account for over 24% of the total, reflecting the orientation of businesses towards property investments, a trend that continues to remain strong in 2025. Meanwhile, only 14% of loans were used for the purchase of equipment, signaling that investments in modernization and increased production capacities remain limited.
A significant element of the lending landscape is the total lack of loans for business start-ups, which suggests a low level of new entrepreneurship and a still cautious climate for launching new economic activities.
In terms of currency, the lek remains dominant in business lending during 2025, while the euro accounts for the rest of the loans. This structure shows the efforts of businesses to reduce exposure to exchange rate risk, in a still uncertain financial environment.
Overall, the 2025 data show that the growth in business credit does not necessarily translate into increased productive investment. Businesses continue to rely primarily on credit for liquidity and real estate, reflecting a development model still focused more on survival and value preservation than on expansion and innovation.
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