The recent decisions of the Bank of Albania, with a trend towards lowering the base interest rate, have made loans more affordable.

The impact of this reduction has already been felt by citizens and businesses since the end of the previous year, while the ongoing trend points to further decreases in the base rate. In its report for the fourth quarter of 2024, the Bank of Albania states that the interest rate for mortgage loans for individuals stood at 3.7%.

Meanwhile, the average interest rate for new loans in Lek granted to businesses in this quarter was 6.4%, marking a 0.2% decrease since the beginning of the year.

However, the decline in interest rates has also affected deposits. The average interest rate on Lek deposits fell to 1.9%, down from 2.2% at the start of the year. Similarly, the interest rate on Euro deposits dropped to 1.1% in the fourth quarter, compared to 1.4% in the previous two quarters.