Bad loans are decreasing. At the end of March, they constituted 4.64% of the total, the lowest level in the last 10 years.

In February, they were at the level of 4.69%, while during 2023, they fluctuated at the level of 5%.

According to data from the Bank of Albania, the quality of the loan portfolio improved during the end of 2023 and continued in the first quarter of this year, beating initial expectations, according to which inflation and the increase to record levels of the basic interest rate would increase the level of problem loans.

The way to solving this problem is also dedicated to banks, which have shown increased caution in approving loans in recent years.

Also during this period there was a change in the behavior of businesses and individuals, who have largely chosen the lek currency.

Seeing the performance of the exchange rate that has reduced the value of the foreign currency, the tendencies for lending in euros or dollars have resulted in a decrease.