Non-performing loans fell to 4% of the total in February, marking the lowest level of bad loans since 2008.

According to data from the Bank of Albania, non-performing loans accounted for 4.06% of the total in February, down from 4.7% a year earlier.

This decline indicates a steady downward trend in problematic loans.

The decrease in the non-performing loan ratio has also been influenced by the rapid growth of lending to the economy.

According to statistics, the loan portfolio for the economy has reached 848 billion lek, an increase of 13% compared to last year.

Meanwhile, the non-performing loan portfolio has dropped to around 34.4 billion lek, from 35.2 billion lek a year earlier.

The strengthening of the lek against the euro over the past two years has had a significant impact on reducing the ratio of non-performing loans.

Additionally, lower interest rates have had a positive effect on borrowers’ ability to repay.