Bad loans threaten economy

TIRANA, June 16 – Konfindustria, the private business association, recently expressed concern about the increasing number of unpaid loans during the first quarter of 2008.
The central Bank of Albania said 3.92 percent of loans went unpaid during the first quarter, which is a 15 percent increase over the previous quarter.
The association said the bad loans could have a chain reaction throughout the entire economy.
The association called on the central bank to produce informative reports and provide detailed information on banks and their clients involved in unpaid loans in order to save the majority of banks from its negative consequences.
The association asked the bank to further reinforce its active role in the country’s credit system or the economy could face greater negative impacts from the imported effects of the global recession. (Tirana Times Staff)