• Real estate represents mortgage loans and land acquisition.
• Durable goods represent purchase of long-term goods, such as vehicles and furniture.
• Non-durable goods represent consumer loans, such as loans for vacation or education.
• Business activities represents taking credit for starting a private business.
• Overdraft is a short-term loan on the individual’s current account.
In 2012 (until the end of December), the amount of household credit given by banks by purpose of use are as follows:
Source: Bank of Albania
Analysis and comments: ODA
As can be seen from the graph, the majority of household loans are given to individuals for real estate purchase (100.4 billion lek), followed by non-durable goods purchase (17.3 billion lek), for business activities (6.8 billion lek), durable goods purchase (8.7 billion lek) and overdraft (8.6 billion lek).
Compared to 2011, it can be concluded that the amount of credit given for business activities has decreased, while overdraft and durable goods purchases have increased.
Also another important result is that almost 54% of the total credit to households, is in EUR, and 45% in LEK (the remainder is in USD and other currencies).This demonstrates an increase in euroization of the economy, and the dependence on the common European currency.
Credit to households by purpose (in million lek)
Source: Bank of Albania
Analysis and comments: ODA