Bad loans increase to 8.0% of GDP

TIRANA, June 26ؔhe share of non-performing loans in Albania rose to the equivalent of 8.0% of the country’s gross domestic product (GDP) at the end of April, the governor of the Bank of Albania, Ardian Fullani said.
“We expect that figure to rise by the end of the year, considering some economic indicators, the business sentiment in the country, the slowdown in crediting and the expectations that the economic growth this year will be much slower than last year’s,” Fulani said in a statement.
The loan portfolio of the 16 commercial banks in Albania totaled some 418 billion Lek (3.2 billion euro) at the end of April, up 28.1% from a year ago, and 0.38% higher on the month.
Albania’s GDP grew by a real 7.2% in 2008 according to authorities. The country has projected a real 6.3% economic growth in 2009. Calculated in current prices, the country’s economy is expected to grow to1.18 trillion Lek this year.
Albania began to feel the effects of the global financial crisis in the fourth quarter of 2008, according to BoA’s governor, which resulted in many people withdrawing their bank deposits at the end of 2008 and the beginning of 2009