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Albania Sees Bad Loans Increase
Tirana, Jan. 7, 2008 (AE) – Bad loans jumped by more than 15 million euro in November as economic condition worsened in Albania, data from Association of Banks in Albania shown.
Total bad loans, reached a historical high at 5 per cent of the credit portfolio in November ‘08, compared to October.
Compared to January ‘08, bad loans almost doubled reaching 160 mln Euro in November.
The banking system faced a major credibility crisis in October and November when Albanians withdrew more than 345 million euro from their deposits in the banks, more than 6 per cent of total deposits.
Despite such negative effects, banks in Albania remains by far profitable. In November Return on Equity shrink to 11.4 per cent, from the maximum height of 20 per cent registered in the last year.
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