PRESS RELEASE
Meeting with executives of banking system in Albania on boosting the lending to economy

On 2 September 2014, Mr. Ardian Fullani, Governor of the Bank of Albania, held a meeting with executives of banking system in Albania. The latest developments in the banking system, with particular attention to the situation of non-performing loans and the progress of the project on businesses' loan restructuring were at the focus of the discussions.

Bank of Albania in cooperation with the World Bank's Vienna-based Financial Sector Advisory Centre (FinSAC) has designed the platform to address the non-performing loans problem. This project is part of the measures taken earlier by the Bank of Albania, among the most important ones  being the legal amendments related to the facilitating process of collateral execution; the modalities for the bailiffs payment, and the loan write-off from banks' balance sheet.

The commitment of banks in this project is highlighted as indispensable in addressing the non-performing loans. More frequent contacts and sustainable relations between banks and borrowers will drive to a well-studied restructuring process of non-performing loans and will boost lending.

In Bank of Albania's opinion, the suitable conditions are now in place for a more vigorous activity by banks. The payment of arrears to private companies for public works is a positive step in this regard.

Banks committed to take all the necessary measures to fulfil the objectives set forth in this project. The close cooperation with the FinSAC experts aims at a deeper and more professional restructuring and the improved management of non-performing loans. The FinSAC was established by the World Bank with the purpose to provide technical assistance on the regulation and supervision of the financial sector to central banks and financial regulators in Europe and Central Asia.