Bad loans, a threat. Experts suggest government buys them

24/04/2015 00:00

Experts raise the alarm that bad loans might keep the Albanian economy in depression for a long time.

“If this issue will not be resolved on time, there will be a bigger risk for the economy to get worse”, said Selami Xhepa, expert of economy.

These past two years, the government and the Bank of Albania have undertaken a series of measures to reduce the bad loans. But their effect has been minimal. Ardian Civici says that this is the time for other more radical policies, such as having the government buy bad loans.

“These policies, starting with the Bank of Albania and other financial institutions, intervene in the market, in cooperation with the Ministry of Finances and international institutions, to clear the market of what they consider infected or negative. Naturally, there other elements, such as the intervention of the government”, declared Ardian Civici, expert of economy.

“All opportunities are open now, starting from the review of every specific case and of every method that the Albanian government can use to help easing the banking system conditions”, declared Selami Xhepa.

The financial system is trapped, with huge money deposits not being deposited as loans for the economy. This seems to have created tension between banks and businesses.

“Second level banking enterprises not only do not reflect to credit the Albanian enterprise, by treating themselves as monopoly in this market, but they transfer more than 293 billion All to their headquarters”, declared Nikolin Jaka, Head of the Chamber of Commerce in Tirana.

For the Minister of Finances, the stalemate was not only with the banks. Shkelqim Cani thinks that businesses have part too.

“Let’s not blame the banking system only. Businesses have their problems too, because they must present even more complete and more solid projects which can receive an approval from the banking system more easily”, Cani declared.

These declarations were released by the Head of Finances during a special scientific conference on the financing of economy that was organized in some private universities.

Top Channel