PRESS RELEASE
Decisions by the Supervisory Council, 7 May 2025

On 7 May 2025, in addition to the decision to keep the monetary policy rate unchanged at 2.75%, as well as the interest rates for the overnight deposit facility and the overnight lending facility at 1.75% and 3.75%, respectively, the Supervisory Council of the Bank of Albania also reviewed and approved:

• To set upper limits on “Loan-to-Value (LTV) Ratio” and “Debt Service-to-Income Ratio” for residential real estate loans.

This decision aims to set upper limits (ceiling) on two indicators of bank lending for residential real estate. The implementation of these limits will enable the reduction of borrowers' default risk and minimize bank losses associated with these loans, as a result of unfavourable developments in real estate prices and the country’s macroeconomic environment, such a rising unemployment, declining income, increasing interest rates, etc. These limits take into consideration and are tailored to proportionally address the risk depending on the type of property and the currency in which the loan is issued. 

The decision also includes a recommendation regarding the maximum loan maturity for residential real estate loans, which may assist banks in improving the risk profile of a given exposure. 

• Amendments to the Regulation "On coin minting/reminting and banknote printing/reprinting, as well as putting in circulation and withdrawal from circulation the Albanian banknotes and coins, legal tender "

The amendments reflect improvements and precise refinements to the definition of specific terms used in the relevant regulation.

• The reprinting of the Albanian banknotes, denomination 2000 Lekë, legal tender.

This decision provides the reprinting of the 2000 Lekë banknote, legal tender, in order to meet the economy's demand for cash, in terms of both value and structure, and to ensure a regular supply of these banknotes over several years.

The Supervisory Council was also informed on the daily functional and operational activities of the Bank of Albania.