With lower interest rates, both businesses and individuals in Albania are quickly taking out loans, pushing up approval rates across the board.
Lower interest rates from the Bank of Albania and the European Central Bank have sparked a credit surge, with businesses and individuals rushing to take out loans.
Banks reported a rise in loan approvals in late 2024, driven by easier collateral rules and stronger financial positions for businesses. Most companies borrowed to fund stock and investments, encouraged by optimism for 2025. Loans for liquidity, once popular, saw a decline.
For individuals, higher incomes and good credit histories made borrowing easier. Consumer loans jumped sharply, while demand for mortgages held steady.
Banks predict loan demand will stay strong in early 2025, especially for home purchases and everyday spending.
