Source: Bank of Albania
Comments and analysis: ODA
Subjects who has registered a big drop in lending are entities operating in the construction sector, as a sector that is suffering even more from the country’s economic crisis. Loans for construction fell sharply dropping to 53.8 billion All at the end of December 2013. Versus the previous year, construction loans shrank by 15.2% , marking the second consecutive year with a decline in lending to this important branch of the national economy.
During 2013 it was significantly increased lending to business entities operating in the manufacturing sector, distribution of electricity, gas and water. At the end of 2013 lending to this sector reached nearly 50 billion All loan approximating the loan delivered to the construction. This sector was ranked the fourth sector for lending from banks during 2013. Against the 2012 the loan for energy increased by 7.5% and comparing to 2007 it has almost quadrupled. This came from the rapid growth of investments in hydropower construction facilities, from local and foreign companies.
Source: Bank of Albania
Comments and analysis: ODA
The credit for businesses operating in the sector of real estate, leasing, etc , decreased on a yearly basis, confirming the uncertainty of banks to support financialy the real estate market, but also the decline in demand from the entrepreneurs themselves to buy real estate for business purposes.
However this loan occupies a very small share of total business loans. A fall was also recorded in trade, accommodation and education lending .
The branch that has a continuous increase in bank lending is agriculture, which has seen an expansion of 7% in 2013 compared to a year ago. This sector is among the few ones that have continued to expand even during the years of economic crisis, supported even from inter-governmental programs for lending this sector through banking system.
However agriculture still shares a minimum part of total bank lending to businesses, only 2 % .
Source: Bank of Albania
Comments and analysis: ODA