Konfindustria: New measures needed to stimulate liquidity

TIRANA, Aug. 6 – Albania’s business community represented by Konfindustria Association describes the latest Bank of Albania move to lower the key interest rate by another 0.25 percent as a good step but insufficient to overcome the difficult liquidity situation in the economy.
In a statement, Konfindustria says the impact of the cut in the key interest rate by 4 percent has been negligible in increasing credit to the economy or in the government security market where yields remain high.
The Association says extra measures are needed to increase competition in the banking market which suffers from clear signs of an oligopoly situation especially in the government securities, banking commissions and lending terms for both businesses and citizens.
The first five months of this year saw a decrease in liquidity also reflected in lower sales for industries, says Konfindustria.