07.07.2021 – 19:58
The Regulation of the Bank of Albania on setting a ceiling interest rate for consumer and mortgage loans will enter into force next year.
This has been confirmed by the governor of the central bank Gent Sejko, according to which this initiative comes after numerous complaints that businesses and individuals have submitted regarding the high interest rates on loans, especially from non-bank financial institutions.
“As a result of complaints that have come from many entities, individuals or businesses for high interest rates, we must be clear that these non-bank financial institutions operate with donations or other sources of funding. They also have higher costs and the typology that these institutions have carries the highest interest rate anywhere in the world. Yes of course these interest rates have a limit and to regulate the market so as not to exceed interest rates the bank is preparing a regulation and of course we want to avoid abuses if any and we are in the stage of verifying and studying the market in this aspect. The analysis phase will be closed within this year and the regulation will enter into force next year. ” Gent Sejko, Governor of the BoA.
The regulation with the new amendments to set a limit on interest rates was introduced for public consultation with stakeholders in February this year.
However, the proposals were not welcomed by non-bank financial institutions, arguing that this could force them to give up small loans, as according to them the costs of securing funds are significantly higher than in relation to the banking sector. .