Bad loans are fluctuating this period below the level of 5% of the total, this figure is at the lowest historical levels. However, in the first month of the year they have undergone a slight increase, compared to the end of 2023.

Bad loans increased slightly in January. According to data from the Bank of Albania, in the first month of 2024, they reached the level of 4.88%, while a month earlier they constituted 4.74% of the total, or the lowest historical level.

The data shows that throughout 2023, non-performing loans fluctuated in the range above 5%, peaking at 5.3% in August.

However, the quality of the loan portfolio has continued to improve, overturning even the predictions that they could increase after the decision of the Central Bank, which brought the interest rate to 3.25%.

Commercial banks have also played their role in the loan portfolio, making careful analyzes and assessments of the solvency of consumers and businesses in repaying the loans they receive.

Meanwhile, as far as the exchange rate is concerned, the strengthening of the lek has partially also had a parallel negative effect, because it has shrunk the value of the foreign currency loan portfolio.

The value of the loan portfolio for the economy in January reached 7.3 billion euros, with an annual increase of 1.9%.

In total, the Albanian banking system has more than 350 million euros in loans, which are not paid on time.