Financial crisis will reflect itself in credit crunching

Oct 15. Taking a loan from a bank will be harder now. Banks have increased and hardened the criteria for credit giving. According to economic experts, one of the biggest effects of the global crisis that will reflect itself in our economy will be the credit crunch.
“We should expect a credit crunch; especially in consume credit, where the risk evaluation and risk management is harder for banks. Of course, this credit crunch will have negative repercussion all over economy and will slow its growth,” said Selami Xhepa, one of the Prime Minister’s advisors in economic issues.
If EU countries have raised minimum safety deposits to 50 thousands Euros, in Albania, such security level is much lower. According to Xhepa, strict measures in the banking system taken by EU are not necessary in Albania.
“Such measures to guarantee the citizens bank deposits are very expensive and are operated by banks with their own funds. In other words, such tough measures will increase banking operating costs to a great extend. In return, credit will get more expensive, credit growth will get slower, and the growth of our banking system will be much slower than it now is,” said Xhepa.
Meanwhile, different experts in economic issues have insisted in planning different concrete preventing scenarios on the impact of financial crisis on our banking system. The projection of the 2009 budget is the right time and place to start, say the experts.