NPL ratio falls as lending rises

Albania’s non-performing loan ratio fell in April, while banks continued to increase lending to businesses.

Bank of Albania data show NPLs dropped to 3.75%, from 3.85% in March.

That is one of the lowest levels in recent years and suggests borrowers are keeping up with repayments.

New lending has grown, mainly to businesses investing or expanding.

Loans to private non-financial companies reached 20.55bn lek in February, up from 17.75bn lek a year earlier.

The NPL ratio remains below the higher levels seen in 2025, when it reached 4.37%.

The main risk is inflation, with Middle East tensions threatening higher energy and food prices.