Non-performing loans are decreasing. Their tightening due to the increase in interest rates and inflation during the past year touched the highest level in August 2023 with the level of 5.3%.

But, in November non-performing loans decreased to 5.07% of the total. In the second part of the year, they have gradually decreased, even though the Central Bank has intervened to increase the interest rate to 3.25%.

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 at the end of October reached 7.2 billion euros, with an annual increase of 1.9%. In the absence of the exchange rate effect, the Bank of Albania calculates that the annual growth would have been around 7%.

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