Households had difficulties in repaying their loans in 2022, report suggests

More than half of Albanian households who have a bank loan reported difficulties in affoding their installments during the second half of last year.

According to a report released by the Bank of Albania on financial stability in the second half of 2022, 53% of households who had a consumer loan or a mortgage loan, reported a decrease in their ability to pay.

Meanwhile inflation peaked during the second half of 2022 when it hit 8%. Currently, according to INSTAT, inflation has slowed to 5%, while the hike in interest rates from 0.5% to 3% within a year have made new and existing loans more expensive.

The central bank  and international institutions predict inflation to return to the 3% target that the Bank of Albania has set.