Loans in foreign currencies getting more expensive.

Lek, the Albanian currency has lost 27 points toward US dollar these last two months and another 5 points toward Euro. The devaluation of Lek due to currency exchange rates in the last months is causing problems for individuals and business to keep up with their credit payments. The simple fact that Lek is losing ground on both those currencies makes the loan payments more expensive for the bank clients.
Credit in foreign currency is considered as one of the main risks that may add to bad credit for the simple fact that fluctuations in the currency exchange rates can diminish the buying power of Albanians for foreign currency as the current situation reflects. One simple advice would be that the currency exchange market is against the client for the time being with Lek losing ground still. Therefore, loans in foreign currency should be avoided, unless one’s income comes in the same currency.
BoA has taken its steps to minimize the currency exchange risk with new rules for banks in relation to credit giving.