Expectations for the months to come: Demand for loans will increase
In the months to come, demand by businesses and individuals for bank loans will increase. This is confirmed by experts of the central bank in the latest report on lending, indicating the need that these categories will have for cash. “Expectations for the third quarter of the year as far as loans are concerned, seem to be the same as the second quarter for all business categories. The increase of the demand for loans will be focused on loans for cashflows, while demand for investment loans will be lower in the third quarter of 2018”, experts of the central bank say. “In the third quarter of the year, banks are expecting to see a slightly higher increase than the second quarter for mortgage loans and consumer loans”, they explain as far individual loans are concerned.
Konfindustria raises the alarm for constructions: They’re like Ponzi schemes
“This year there have been clear signs for the threat of the creation of Ponzi schemes in the sector of urban constructions all over the country”. This was the alarm that was launched yesterday by the business organization, Konfindustria. “According to official data, in the first quarter of 2018, compared to the first quarter of the previous year, the number of construction permits that authorities have issued, has increased by 120%, while construction areas have increased by 200%”, Konfindustria says. This organization also points out that the dramatic increase of demand for construction permits and construction areas is not justified by the low economic growth in the recent years, which has not been higher than 3.5% of GDP. “The increase of the number of construction permits contradicts the data issued by the Bank of Albania that the number of bank loans for home purchases is dropping. “Konfindustria maintains that the fear from the vetting process in the justice system, politics and state institutions, associated with increasing pressure by international security agencies, has increased the amount of suspicious funds entering the country from abroad with the scope of investing it”, Konfindustria.
Increase of demand for loans in double digit figures
The figures supplied by the Bank of Albania indicate a rise in the demand for loans. According to these figures, from a single digit figure, the increase is now in double digit figures. The increase for business loans this year was 14%. The increase for investment loans was 12.3% as opposed to 2.4% last year. The same must can also be said about the demand for individual loans, which this year increased by 20%. In fact, the figures supplied by the Bank of Albania indicate the number of mortgage last year was also high, showing that there’s an increasing interest for new homes.