TIRANA, July 3 /ATA/ – Businesses and individuals increasingly prefer bank loans in the national Albanian currency, the Lek.

The latest Bank of Albania report shows a significant shift in lending patterns over the past year with the Lek-denominated bank loans surpassing the value of loans issued in foreign currencies.

The Lek-denominated loan portfolio accounted for 53.7% of the total credit portfolio in 2023, registering a 4% year-on-year increase.

Loans issued in foreign currencies registered a decrease in their share compared to 2022.

According to the central bank, the loan structure according to the economy sectors in 2023 show higher lending rate for businesses than individuals.

The banking sector’s support has been particularly evident in trade, which remains a key recipient of credit. Wholesale and retail trade, along with vehicle and motorcycle repair, topped the sectors with a combined share of 30.3% of the credit portfolio. Construction followed at 17.3%, and manufacturing at 12.4%.

Private sector lending represents around 60.8% of the total credit distribution. Individual loans saw a notable increase of 23 billion Lek, while lending extended to the public sector declined by 8.4 billion Lek.