Lek strengthens its weight in lending, euro loses ground/ 87% of new loans to individuals were granted in the local currency
New credit to individuals continued to expand during the first seven months of the year, while data show a strong shift in the currency of borrowing. According to the “Bank of Albania”, during the period January-July 2026, new loans to individuals and non-profit institutions serving them reached 87.3 billion lek, up from 77 billion lek in the same period last year. The annual growth was 13.4%.
In July alone, new borrowing for this category reached 13.9 billion lek, up from 9.8 billion lek in July 2025. This represents an increase of about 42% within a year.
But the biggest change is in the currency in which the loan is being taken out. During the first seven months of the year, new loans in lek reached 75.7 billion lek, 24% more than a year earlier. This means that about 87% of all new loans to individuals during this period were granted in the local currency.
On the other hand, lending in euros has shrunk. In January-July 2026, new loans in euros reached 11.6 billion lek, from around 16 billion lek a year earlier, marking a decrease of 27.2%.
The difference is even more noticeable compared to the structure of a year ago. In the first seven months of 2025, loans in lek accounted for about 79% of new individual borrowing, while this year their share has risen to about 87%. At the same time, the share of loans in euro has decreased from about 21% to just 13%.
July also confirms this trend. New loans in lek reached 12.4 billion lek, about 51% more than in July last year, while loans in euro fell slightly, to about 1.47 billion lek.
Lek loans are becoming more attractive, especially for individuals whose income is in the local currency. In this way, borrowers avoid the risk of their installments increasing if the euro strengthens in the future, while borrowing becomes more predictable throughout the repayment period. Lek interest rates have also become more competitive, according to the data.
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