BoA concern over affected residents’ ability to pay back house loans

Tirana Times
By Tirana Times December 6, 2019 12:08

BoA concern over affected residents’ ability to pay back house loans

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  • Compared to the previous year, the housing loan stock increased by 6.5 percent, according to the Bank of Albania

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TIRANA, Dec. 5 – The Governor of the Bank of Albania, Gent Sejko, urged banks to assess the impact of the earthquake on the ability of the affected people to pay back loans as soon as possible. He urged banks to look at all the possible options so that the consequences do not slow down the loan rate in the economy.

The loan stock that the Durrës residents received for housing purchases at the end of the third quarter of this year amounted to 72 million euros, according to statistics published by the Bank of Albania. This is the amount that individuals should repay to banks, based on the maturity of the loan. Compared to a year ago, loans stock for houses in Durrës increased by 15 percent by the end of the third quarter, reflecting the resurgence of the construction sector in the country, as well as the increased demand in beach houses, as the coast of Durrës during the last two years has become very appealing due to the increase in of foreign tourists. However there is still no accurate data on the number of residents of the damaged buildings who have purchased their apartment through bank loans, as many of the buildings were relatively new.

On the other hand, the housing loan stock is much higher in Tirana. Residents who bought an apartment through loans must pay back about 640 million euros to the banks. Compared to the previous year, the housing loan stock increased by 6.5 percent, according to the Bank of Albania.  In total, the stock of loans granted to individuals towards housing, amounts to around 930 million euros. Tirana accounts for 69 percent of this amount while Durrës accounts for 8 percent. 

In response to the Governor’s request, bank executives suggested drawing up a plan involving measures for borrowing clients who are affected by the earthquake damage, such as the restructuring of loans, if necessary, without imposing additional costs.

 

Tirana Times
By Tirana Times December 6, 2019 12:08